Exercise 11-13A Recording and reporting treasury stock transactions LO 11-5

The following information pertains to JAE Corp. at January 1, Year 1:

Common stock, $10 par, 12,000 shares authorized, 2,400 shares issued and outstanding	$	24,000
Paid-in capital in excess of par, common stock		12,100
Retained earnings		57,400

JAE Corp. completed the following transactions during Year 1:

1. Issued 900 shares of $10 par common stock for $29 per share.
2. Repurchased 220 shares of its own common stock for $26 per share.
3. Resold 50 shares of treasury stock for $27 per share.

Required a. How many shares of common stock were outstanding at the end of the period?

b. How many shares of common stock had been issued at the end of the period?

c. Prepare journal entries for these transactions and post them to T-accounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Issued 900 shares of $10 par common stock for $29 per share.

Repurchased 220 shares of its own common stock for $26 per share.

Resold 50 shares of treasury stock for $27 per share.

Cash					Common Stock
Beg. Bal					Beg. Bal
End. Bal					End. Bal
PIC in Excess of Par, CS					Treasury Stock
Beg. Bal					Beg. Bal
End. Bal					End. Bal
PIC in Excess of Cost, TS
Beg. Bal
End. Bal

d. Prepare the stockholders equity section of the balance sheet reflecting these transactions. (Amounts to be deducted should be indicated with minus sign.)

Stockholders' equity
Total paid-in capital		$0
Total stockholders equity		$0