Question

On December​ 30, Seaside purchased 125 shares of treasury stock at $10 per share.

Data Table Stockholders' Equity Paid-In Capital: Common Stock-$5 Par Value; 1,300 shares authorized, 130 shares issued and outstanding $ 650 1,950 Paid-In Capital in Excess of Par—Common Total Paid-In Capital Retained Earnings 2,600 54,000 $ 56,600 Total Stockholders' Equity Print Done

1.Journalize the purchase of the treasury stock.
2.	Prepare the​ stockholders' equity section of the balance sheet at December​ 31, 2018. Assume the balance in retained earnings is unchanged from November 30.
3.	How many shares of common stock are outstanding after the purchase of treasury​ stock?

Answer 1

1.

Date	General journal	Debit	Credit
	Treasury Stock	$1,250
	Cash		$1,250

2.

Stockholder's Equity
Paid-in-Capital
Common stock-$5 par value: 1,300 shares
authorized, 130 shares issued	650
Paid-in-capital in excess of par - common	1,950
Total Paid in capital	2,600
Retained earnings	54,000
Total of paid in capital and retained earnings	56,600
Treasury Stock	-1,250
Total Stockholder's Equity	$55,350

3.

Number of outstanding shares after purchase of Treasury stock = Number of shares issued - Number of shares bought back

= 130-125

= 5

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