Accounting for treasury stock (Learning Objectives 6 & 7) 20–25 min.

Swanson, Inc., had the following stockholders’ equity on November 30:

Paid-in Capital:

Common Stock, $2 par, 750,000 shares authorized, 70,000 shares issued and outstanding Paid-in Capital in Excess of Par Total Paid-in Capital Retained Earnings Total Stockholders’ Equity

$140,000 420,000

$560,000 370,000

$930,000 Stockholders’ Equity On December 24, Swanson, Inc., purchased 12,000 shares of treasury stock at $8 per share.

Requirements 1. Journalize the purchase of the treasury stock.

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

AppendixLO1