Southern Amusements Corporation had the following stockholders equity on November 30: Stockholders Equity Paid-In Capital: Common Stock

Question:

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

Stockholders’ Equity

Paid-In Capital:

Common Stock—$ 5 Par Value; 1,300 shares authorized,

290 shares issued and outstanding ............$ 1,450

Paid- In Capital in Excess of Par—Common ......... 13,500

Total Paid- In Capital .................. 14,900

Retained Earnings .................... 57,000

Total Stockholders’ Equity ............... $ 71,950

On December 30, Southern purchased 275 shares of treasury stock at $ 14 per share.

Requirements

1. Journalize the purchase of the treasury stock.

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

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