Reconstructing transactions involving shareholders' equity. Conrad Company began business on January 1. Its balance sheet on December 31 contained the shareholders' equity section in Exhibit 12.8.

During the year, Conrad Company engaged in the following transactions:

(1) Issued shares for \(\$ 15\) each.

(2) Acquired a block of 300 shares for the treasury in a single transaction.

(3) Reissued some of the treasury shares.

(4) Sold for \(\$ 5,000\) securities available for sale with original cost of \(\$ 3,000\). At the end of the year, securities available for sale had original cost of \(\$ 6,000\) and market value of \(\$ 7,000\).

Assuming that these were all of the common stock transactions during the year, answer the following questions:

a. How many shares did Conrad Company issue for \(\$ 15\) ?

b. What was the price at which it acquired the treasury shares?

c. How many shares did it reissue from the block of treasury shares?

d. What was the price at which it reissued the treasury shares?

e. What journal entries did it make during the year?

f. In which statement or statements will Conrad Company report the various gains and losses on its holdings of securities available for sale?

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EXHIBIT 12.8 CONRAD COMPANY Shareholders' Equity as of December 31 (Problem 34) Common Stock ($10-par value) Additional Paid-in Capital Retained Earnings... Less Unrealized Holding Loss on Securities Available for Sale Less 180 Shares Held in Treasury Total Shareholders' Equity $30,000 15,720 6,000 (1,000) (3,600) $47,120