Reconstructing transactions involving shareholders' equity. Shea Company began business on January 1. Its balance sheet on December 31 contained the shareholders equity section shown in Exhibit 12.10. During the year, Shea Company engaged in the following transactions: (1) Issued shares for $30 each. (2) Acquired, in a single transaction, a block of 2.000 shares for the treasury. (3) Reissued some of the treasury shares. (4) Sold for $12,000 securities available for sale for which had originally cost $14,000. At the end of the year, securities available for sale, still on hand, which had originally cost $25.000 had market value of $18,000. Assuming that these were the only common stock transactions during the year, an- swer the following questions:

a. How many shares did Shea Company issue for $30 each?

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 Shea Company report the various gains and losses on its holdings of securities available for sale!

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SHEA COMPANY EXHIBIT 12.10 Shareholders' Equity as of December 31 [Problem 35) Common Stock ($5 per value) Additional Paidin Capital Retained Earnings Less Unrealized Holding Loss on Securities Available for Sale Less 1.200 Shares Held in Treasury Total Shareholders' Equity $100,000 509,600 50,000 (7,000) (33,600) $619,000