Question
Good day, please help me on my problem solving activity in Intermediate Accounting 2: Shareholder's Equity. I would very much appreciate! The stockholders' equity of
Good day, please help me on my problem solving activity in Intermediate Accounting 2: Shareholder's Equity. I would very much appreciate!
The stockholders' equity of the TAEOH Corp. as of December 31, 2020, was as follows:
Common stock, 10 par, authorized: 300,000 shares
250,000 shares issued and outstanding 2,500,000
Paid-in capital in excess of par 3,750,000
Retained earnings1,800,000
On June 1, 2021, TAEOH reacquired 40,000 shares of its common stock at 40. The following transactions occurred in 2022 with regard to these shares.
July 1Sold 15,000 shares at 45
Aug 1Sold 17,000 shares at 30
Sept 1Retired 1,000 shares.
The following entries were made by the bookkeeper to record the preceding transactions:
2022
June 1Treasury stock 1,600,000
Cash 1,600,000
July 1Cash675,000
Treasury stock675,000
Aug 1Cash510,000
Treasury stock510,000
Sept 1Common stock10,000
Treasury stock10,000
The company's net income for 2021 was 120,000.
Based on the preceding information, determine the correct balances of the following accounts:
Q1. Treasury stock ________________
Q2. Common stock ________________
Q3. Paid-in capital in excess of par ________________
Q4. Paid-in from treasury stock ________________
Q5. Retained earnings ________________
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