(L.OBJ. 3) Journalizing treasury stock transactions and reporting stockholders’ equity [...

(L.OBJ. 3) Journalizing treasury stock transactions and reporting stockholders’ equity [10-15 min]

Frontier Amusements Corporation had the following stockholders’ equity on November 30:

On December 30, Frontier purchased 125 shares of treasury stock at $12 per share.

Requirements

1. Journalize the purchase of the treasury stock.

2. Prepare the stockholders’ equity section of the balance sheet at December 31.

3. How many shares of Common stock are outstanding after the purchase of treasury stock?