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

On December 30, Southern purchased 200 shares of treasury stock at $15 per share.
Requirements
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?

Transcribed Image Text:

Stockholders' Equity Paid-In Capital: Common Stock-$5 Par Value; 1,300 shares authorized, 250 shares issued and outstanding $ 1,250 Paid-In Capital in Excess of Par-Common 3,750 Total Paid-In Capital 5,000 Retained Earnings Total Stockholders' Equity 50,000 $ 55,000