1.-

The company began business on January 1st. Its Balance Sheet on December 31stcontained the Shareholders Equity as follows:

Common Stock (5 par value)			15.000
Additional paid in capital			50.000
Retained earnings			5.000
Less 180 shares held in treasury			-5.000
Total Shareholders Equity			65.000

During the year Parmalat engaged in the following capital stock transactions:

a) Issued shares for 20 each.

b) Acquired 400 shares for the treasury in a single transaction.

c) Reissued some of the treasury shares.

Assume that those were all of the common stock transactions during the year.

1.- How many shares did Parmalat issued for 20? (3 points)

2.- What was the price at which it acquired the treasury shares? (3 points)

3.-How many shares did it reissue from the stock of treasury shares? (3 points)

4.- What was the price at which it reissued the treasury shares? (12 points)

5.- What journal entries did it make during the year? (16 points)

Common Stock (5 par value) 15.000 Additional paid in capital 50.000 Retained earnings 5.000 Less 180 shares held in treasury| -5.000 Total Shareholder's Equity 165.000