Question

The following information pertains to JAE Corp. at January 1, Year 1: $23,400 Common stock, $9 par, 13,000 shares authorized 2,600 shares issued and outstanding Paid-in capital in excess of par, common stock Retained earnings JAE Corp. completed the following transactions during Year 1: 1. Issued 800 shares of $9 par common stock for $26 per share. 2. Repurchased 230 shares of its own common stock for $23 per share. 3. Resold 50 shares of treasury stock for $24 per share. Required a. How many shares of common stock were outstanding at the end of the period? Outstanding shares at the end of the period

Answer 1

Answers Page No ① @ outrolanding ekares at the sand of the period out standing shares at the end of the period = 22600 shares t Soo shares – 230 shares + 50 shares - 3320 shares outstanding shares at the end of the period - 3220 shares © Iemand shares at end of the period Issued shares at end of the period. = 2600 shares + 800.phar - - es during year! - 3400 shares 4. Issued shares at end of the period = 3400 shares © Tournal entries -> To orecord issuance of common stock - Cash : 800 shares x $26 per share 20800

Page No ③ Common stock = 800 shares & 9 par $7200 Paid in Capital in excess of par value = 20800 - 7200 = $ 13600 → To precor the purchase of ticarwy stock Treasury stock = 230 shares & $ 23 per share $5290 → To record sale of treasury stock Cash received = 50 shares * $ 24 = $ 1200 Treasury stock = 50 shares x $23 = $ 1150 Paid in capital in excess of cost, treasury stock = 1200 -1150 = $50 Date . Particular Hear Cash 420800 . common sofock $7200 Paid in capital in excess of $13600 pari common stock Debit I could

Page No ③ Credit Date Particular Debit Year! $5290 $5290 $1200 1150 Treasury stock Cash Yearl cash Treasury slock Paid in capital in excess of cool - reasury stock I-accounta cash -. Debit Credit Treasury stocke $5990 Common stock $7200 Paid in capital in exces $ 13600 of par, Common stock Treasury złock 1150 Puid in capital in eccess $50 of par treasury shock Total balance Total $5290 22000 $16710

Page wo Balance = $20000 - 5290 $16710 Common stecks Debit Credit Balance Cash $23400 $ 4200 Total . fo Total Balance $30600 $ 30600 Paid To capital com excess of peanucommon stock Debit Balance Credit $ 16200 -Cash $13600 Total Total $29800 Balance | 29800 Total = 16200 + 13600 $ 99800

Page. No Toreastery stock mm Debit Gedit cash $5290 . cash $1150 1*1150 Total $5990 Total Balance $4140 Balance - $ 5290 - $1150 = $ 4140 Paid in capital in deneys of poem s treasury Stock Debit Gredit cash € 50 $0 $50 Balance lobal Total $50 @ Stocke holder is coming section of balance sheets The stockholders equity Section of balance sheet is as shown beloos The values obtained from case © 1

Page No ① Particular Amount Amant Paid in capital Coromon stock, 49 par value , 13000 $30600 Shanes autheaized , 3400 shares issuede 3200 shares outstanding: Paid in capital in excess of par, common stock $29800 | Paid in capital in excess of cost, treasury stack & 50 total paid in capital $60450 | Retained carrings $64,400 Total paid in capital & retained caurings $124850 other equity 1 (64140) Total stockholders equila $120710