Sage Company had the following stockholders equity as of January 1, 2017 Common stock, $5 par value, 21,100 shares issued $105,500 Paid in capital in excess of parcommon stock 304,000 Retained earnings 317,000 Total stockholders equity $726,500 During 2017, the following transactions occurred Feb 1 Sage repurchased 2,020 shares of treasury stock at a price of $21 per share Mar 1 740 shares of treasury stock repurchased above were reissued at $19 per share Mar 18 520 shares of treasury stock repurchased above were reissued at $14 per share Apr 22 550 shares of treasury stock repurchased above were reissued at $23 per share Prepare the journal entries to record the treasury stock transactions in 2017, assuming Sage uses the cost method (Credit account titles are automatically indented when amount is entered Do not indent manually If no entry is required, select No Entry for the account titles and enter O for the amounts ) Date Account Titles and Explanation Debit Credit Mar 1 Mar 18 Prepare the stockholders' equity section as of April 30, 2017 Net income for the first 4 months of 2017 was $121,200 (Enter account name only and do not provide descriptive information ) SAGE COMPANY Stockholders' Equity

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 02, 2024

Sage Company had the following stockholders equity as of January 1, 2017. Common stock, $5 par value, 21,100 shares issued $105,500 Paid-in capital in excess

Sage Company had the following stockholders equity as of January 1, 2017.

Common stock, $5 par value, 21,100 shares issued		$105,500
Paid-in capital in excess of parcommon stock		304,000
Retained earnings		317,000
Total stockholders equity		$726,500

During 2017, the following transactions occurred.

Feb. 1		Sage repurchased 2,020 shares of treasury stock at a price of $21 per share.
Mar. 1		740 shares of treasury stock repurchased above were reissued at $19 per share.
Mar. 18		520 shares of treasury stock repurchased above were reissued at $14 per share.
Apr. 22		550 shares of treasury stock repurchased above were reissued at $23 per share.

Prepare the journal entries to record the treasury stock transactions in 2017, assuming Sage uses the cost method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Mar. 1 Mar. 18 Prepare the stockholders' equity section as of April 30, 2017. Net income for the first 4 months of 2017 was $121,200. (Enter account name only and do not provide descriptive information.) SAGE COMPANY Stockholders' Equity