Question
The following information pertains to Javier Corporation as on January 1, Year XXXX. Common stock, $10 par, 10,000 shares authorized, 2,000 shares issued and outstanding
The following information pertains to Javier Corporation as on January 1, Year XXXX.
Common stock, $10 par, 10,000 shares authorized, 2,000 shares issued and outstanding |
$20,000 |
Paid-in capital in excess of par, common stock | 15,000 |
Retained earnings | 65,000 |
Total Stockholders' equity | $100,000 |
Javier Corporation completed the following transactions during the year XXXX
1. Issued 1,000 shares of $10 par common stock for $28 per share.
2. Repurchased 200 shares of its own common stock for $25 per share
3. Resold 50 shares of treasury stock for $26 per share.
In answering the following questions, restrict yourself to only the 3 transactions given above.
Required: (3+1+1+1+1+1+1+3 = 12 points)
a) Classify each of the above 3 transactions as either Asset source OR Asset use OR Asset exchange OR Claims exchange transaction.
b) How many shares of common stock were outstanding at the end of Year XXXX?
c) How many shares of common stock had been issued at the end of Year XXXX?
d) How much is the net impact on the cash balance for Javier Corp. because of the three transactions given above?
e) By how much does the treasury stock account change during the Year XXXX?
f) Javier began the Year XXXX with a balance of $20,000 in Common Stock account as given in the data above. Calculate the balance in the account Common stock at the end of the Year XXXX.
g) Javier began the Year XXXX with a balance of $15,000 in Paid-In Capital in excess of par common stock account as given in the data above. Calculate the balance in the account Paid-In Capital in Excess of Par, Common stock at the end of the Year XXXX.
h) Calculate the amount of total stockholders' equity at the end of Year XXXX for Javier Corp.assuming no change in retained earnings during the year.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started