The following information pertains to JAE Corp. at January 1, Year 1:

Common stock, $9 par, 12,000 shares authorized, 2,400 shares issued and outstanding	$	21,600
Paid-in capital in excess of par, common stock		12,100
Retained earnings		71,200

JAE Corp. completed the following transactions during Year 1:

1. Issued 800 shares of $9 par common stock for $28 per share.
2. Repurchased 190 shares of its own common stock for $25 per share.
3. Resold 50 shares of treasury stock for $26 per share.

Required a. How many shares of common stock were outstanding at the end of the period? b. How many shares of common stock had been issued at the end of the period? c. Organize the transactions data in accounts under the accounting equation. d. Prepare the stockholders equity section of the balance sheet reflecting these transactions.

A & B

a.	Outstanding shares at the end of the period
b.	Issued shares at the end of the period

C

JAE CORPORATION

Accounting Equation for the Year 1

Event

Assets

=

Liabilities

+

Stockholders Equity

Cash

Common Stock

+

Paid-in Capital In Excess Common Stock

+

Paid-in Capital In Excess Treasury Stock

Treasury Stock

+

Retained Earnings

Beg. bal.

=

+

+

+

+

1.

=

+

+

+

+

2.

=

+

+

+

+

3.

=

+

+

+

+

End. bal.

0

=

0

+

0

+

0

+

0

0

+

0

D

JAE CORPORATION
Balance Sheet (Partial)
As of December 31
Stockholders' Equity
Total paid-in capital		$0
Total stockholders equity		$0