Question
The stockholders' equity section of the balance sheet of Caesar Corporation at December 31, 2018 appears as follows: (The company engaged in no treasury stock
The stockholders' equity section of the balance sheet of Caesar Corporation at December 31, 2018 appears as follows: (The company engaged in no treasury stock transactions prior to 2018.)
Stockholders' Equity |
|
|
|
$2 preferred stock, $100 par, 10,000 shares authorized, 8,000 shares issued $800,000 | $ | 800,000 |
|
Common stock, $2 par, 100,000 shares authorized, 75,000 shares issued, 5,000 are held in the treasury 150,000 |
| 150,000 |
|
Additional Paid-in Capital: |
|
|
|
From issuance of preferred stock |
| 80,000 |
|
From issuance of common stock |
| 225,000 |
|
From treasury stock transactions |
| 8,000 |
|
From common stock dividends |
| 26,000 |
|
Total paid-in capital |
| 1,289,000 |
|
Retained earnings ($40,000 equal to cost of treasury stock is not available for dividends) |
| 500,000 |
|
Subtotal |
| 1,789,000 |
|
Less treasury stock (at cost: 5,000 common shares) |
| (40,000 | ) |
Total Stockholders' equity | $ | 1,749,000 |
|
Assume that all remaining treasury stock is reissued at a price of $14 per share in January of 2019. What amount should be credited to the account Additional Paid-In Capital: Treasury Stock Transactions in the journal entry to record this transaction?
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