Question
Swifty Corporation had the following stockholders equity accounts on January 1, 2022: Common Stock ($5 par) $500,000, Paid-in Capital in Excess of ParCommon Stock $225,000,
Swifty Corporation had the following stockholders equity accounts on January 1, 2022: Common Stock ($5 par) $500,000, Paid-in Capital in Excess of ParCommon Stock $225,000, and Retained Earnings $100,000. In 2022, the company had the following treasury stock transactions.
| Mar. | 1 | Purchased 6,500 shares at $8 per share. | |
| June | 1 | Sold 1,500 shares at $12 per share. | |
| Sept. | 1 | Sold 2,000 shares at $10 per share. | |
| Dec. | 1 | Sold 1,000 shares at $7 per share. |
Swifty Corporation uses the cost method of accounting for treasury stock. In 2022, the company reported net income of $28,000.
Prepare the stockholders equity section for Swifty Corporation at December 31, 2022.
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Financial Accounting A Decision Making Approach
Authors: Thomas E. King, Valdean C. Lembke, John H. Smith
2nd Edition
0471328235, 978-0471328230
