Lawn Smart Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On May 29 of the current year, Lawn Smart Inc. reacquired 19,100 shares of its common stock

The stock outstanding when a corporation has issued only one class of stock.

at $20 per share. On August 11, 13,700 of the reacquired shares were sold at $25 per share, and on October 30, 4,000 of the reacquired shares were sold at $21.

Required:

A.

Journalize the transactions of May 29, August 11, and October 30. Refer to the Chart of Accounts for exact wording of account titles.

B.

What is the balance in Paid-In Capital

Capital contributed to a corporation by the stockholders and others.

from Sale of Treasury Stock on December 31 of the current year?

C.

What is the balance in Treasury Stock on December 31 of the current year?

D.

How will the balance in Treasury Stock be reported on the balance sheet?

CHART OF ACCOUNTS

Lawn Smart Inc.

General Ledger

	ASSETS
110	Cash
120	Accounts Receivable
131	Notes Receivable
132	Interest Receivable
141	Merchandise Inventory
145	Office Supplies
151	Prepaid Insurance
181	Land
193	Equipment
194	Accumulated Depreciation-Equipment

	LIABILITIES
210	Accounts Payable
221	Notes Payable
226	Interest Payable
231	Cash Dividends Payable
236	Stock Dividends Distributable
241	Salaries Payable
261	Mortgage Note Payable

EQUITY

311

Common Stock

312

Paid-In Capital in Excess of Par-Common Stock

315

Treasury Stock

321

Preferred Stock

322

Paid-In Capital in Excess of Par-Preferred Stock

331

Paid-In Capital from Sale of Treasury Stock

340

Retained Earnings

351

Cash Dividends

352

Stock Dividends

390

Income Summary

A. Journalize the transactions of May 29, August 11, and October 30. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 10

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
3
4
5
6
7
8

Solution

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
3
4
5
6
7
8

B. What is the balance in Paid-In Capital

Capital contributed to a corporation by the stockholders and others.

from Sale of Treasury Stock on December 31 of the current year?selector 1

Debit

Credit

Points:

Feedback

Check My Work

Explanation

C. What is the balance in Treasury Stock on December 31 of the current year?

selector 1

Credit

Debit

Points:

Feedback

Check My Work

Explanation

D. How will the balance in Treasury Stock be reported on the balance sheet?

selector 1

As an asset

As an addition to stockholder's equity

As a deduction from stockholder's equity

Treasury Stock is not reported on the balance sheet

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Merchandise Sold
515	Credit Card Expense
520	Salaries Expense
531	Advertising Expense
532	Delivery Expense
533	Selling Expenses
534	Rent Expense
535	Insurance Expense
536	Office Supplies Expense
537	Organizational Expenses
562	Depreciation Expense-Equipment
590	Miscellaneous Expense
710