On January 1, 2025, Agassi Corporation had the following stockholders’ equity accounts.

During 2025, the following transactions occurred.

Accounting

Journalize the above transactions. (Include entries to close net income to Retained Earnings.) Determine the ending balances for Paid-in Capital, Retained Earnings, and Stockholders’ Equity.

Analysis

Calculate the payout ratio and the return on common stockholders’ equity.

Principles

R. Federer is examining Agassi’s financial statements and wonders whether the “gains” or “losses” on Agassi’s treasury stock transactions should be included in income for the year. Briefly explain whether, and the conceptual reasons why, gains or losses on treasury stock transactions should be recorded in income.

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Common Stock ($10 par value, 60,000 shares issued and outstanding) Paid-in Capital in Excess of Par-Common Stock Retained Earnings $600,000 500,000 620,000