Sun Dance Gardens Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On June

Question:

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 28,000 shares of its at $37 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?
c. Assume that Sun Dance Gardens sold 10,000 shares of its treasury stock at $40 on November 2. What accounts would be affected by the sale of the treasury stock?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...