QS 13-11 Purchase and sale of treasury stock LO P3

On May 3, Zirbal Corporation purchased 7,000 shares of its own stock for $84,000 cash. On November 4, Zirbal reissued 1,600 shares of this treasury stock for $20,800. Prepare the May 3 and November 4 journal entries to record Zirbals purchase and reissuance of treasury stock.

Journal entry worksheet

Record the purchase of 7,000 shares of its own stock for $84,000 cash.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
May 03

Journal entry worksheet

Record the reissue of 1,600 shares of this treasury stock for $20,800.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Nov 04

Problem 13-1A Stockholders' equity transactions and analysis LO C2, P1

Kinkaid Co. is incorporated at the beginning of this year and engages in a number of transactions. The following journal entries impacted its stockholders equity during its first year of operations.

	General Journal	Debit	Credit
a.	Cash	280,000
	Common Stock, $25 Par Value		225,000
	Paid-In Capital in Excess of Par Value, Common Stock		55,000
b.	Organization Expenses	170,000
	Common Stock, $25 Par Value		127,000
	Paid-In Capital in Excess of Par Value, Common Stock		43,000
c.	Cash	45,000
	Accounts Receivable	17,000
	Building	82,500
	Notes Payable		59,700
	Common Stock, $25 Par Value		54,800
	Paid-In Capital in Excess of Par Value, Common Stock		30,000
d.	Cash	143,000
	Common Stock, $25 Par Value		80,000
	Paid-In Capital in Excess of Par Value, Common Stock		63,000

Required: 2. How many shares of common stock are outstanding at year-end? 3. What is the amount of minimum legal capital (based on par value) at year-end? 4. What is the total paid-in capital at year-end? 5. What is the book value per share of the common stock at year-end if total paid-in capital plus retained earnings equals $780,000?

Complete this question by entering your answers in the tabs below.

Req 2 to 4

Req 5

How many shares of common stock are outstanding at year-end? What is the amount of minimum legal capital (based on par value) at year-end? What is the total paid-in capital at year-end?

2.	Number of outstanding shares
3.	Minimum legal capital
4.	Total paid-in capital

Complete this question by entering your answers in the tabs below.

Req 2 to 4

Req 5

What is the book value per share of the common stock at year-end if total paid-in capital plus retained earnings equals $780,000?

Book Value per Common Share
Choose Numerator:	/	Choose Denominator:	=	Book Value per Common Share
	/		=	Book value per common share
	/		=