Question
Concord Corporation had the following stockholders equity accounts on January 1, 2019: Common Stock ($5 par) $514,200, Paid-in Capital in Excess of ParCommon Stock $216,830,
Concord Corporation had the following stockholders equity accounts on January 1, 2019: Common Stock ($5 par) $514,200, Paid-in Capital in Excess of ParCommon Stock $216,830, and Retained Earnings $104,440. In 2019, the company had the following treasury stock transactions.
Mar. | 1 | Purchased 5,560 shares at $9 per share. | |
June | 1 | Sold 1,410 shares at $13 per share. | |
Sept. | 1 | Sold 1,200 shares at $11 per share. | |
Dec. | 1 | Sold 1,050 shares at $6 per share. |
Concord Corporation uses the cost method of accounting for treasury stock. In 2019, the company reported net income of $34,320.
Journalize the treasury stock transactions, and prepare the closing entry at December 31, 2019, for net income.
Open accounts for (1) Paid-in Capital from Treasury Stock, (2) Treasury Stock, and (3) Retained Earnings. (Post to T-accounts.)
Prepare the stockholders equity section for Concord Corporation at December 31, 2019.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started