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

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

Paid-in Capital:

Common Stock, $4 par, 500,000 shares authorized, 90,000 shares issued and outstanding Paid-in Capital in Excess of Par Total Paid-in Capital Retained Earnings Total Stockholders’ Equity

$ 360,000 450,000 810,000 550,000

$1,360,000 Stockholders’ Equity On December 10, Frontier purchased 2,000 shares of treasury stock at $13 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