Treasury StockTransactions

Sun Dance Gardens Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On June 3 of the current year, Sun Dance Gardens Inc. reacquired 9,800 shares of itscommon stockat $34 per share.

a.What is the balance of Treasury Stock on December 31 of the current year?

$____________________

b.How will the balance in Treasury Stock be reported on the balance sheet?

• an increase in an asset
• a decrease in a liability
• an increase in stock issued
• a decrease in total stockholders' equity

c.Assume that Sun Dance Gardens sold 6,200 shares of its treasury stock at $37 on November 2. What accounts would be affected by the sale of the treasury stock?

Paid-In Capital from Treasury Stock by a.increase or b.decrease $____________

Cashby a.increase or b.decrease $_________

Treasury Stockby a.increase or b.decrease $_______________