Sebastian Corporation had the following stockholders’ equity on November 30: 

On December 30, Sebastian Corporation purchased 275 shares of treasury stock at $14 per share. 

Requirements 

1. Journalize the purchase of the treasury stock. 

2. Prepare the stockholders’ equity section of the balance sheet at December 31, 2025. 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, 290 shares issued and outstanding Paid-In Capital in Excess of Par-Common Total Paid-In Capital Retained Earnings Total Stockholders' Equity $ 1,450 13,500 14,950 57,000 $ 71,950