Treasury stock transactions | Accounting homework help

Pr. 15-143—Treasury stock transactions.

The original sale of the $50 par value common shares of Gray Company was recorded as follows:

Cash 290,000

Common Stock 250,000

Paid-in Capital in Excess of Par 40,000


Record the treasury stock transactions (given below) under the cost method:


(a)Bought 300 shares of common stock as treasury shares at $62.

(b)Sold 80 shares of treasury stock at $60.

(c)Sold 40 treasury shares at $68.

Solution 15-143

DateAccount NameRefDebit Credit






Pr. 15-145—Equity transactions.

Foley Corporation has the following capital structure at the beginning of the year:


6% Preferred stock, $50 par value, 20,000 shares authorized, 

6,000 shares issued and outstanding$ 300,000

Common stock, $10 par value, 60,000 shares authorized, 

40,000 shares issued and outstanding400,000

Paid-in capital in excess of par 110,000

Total paid-in capital810,000

Retained earnings 440,000

Total stockholders’ equity$1,250,000


(a)Record the following transactions which occurred consecutively (show all calculations).

1.A total cash dividend of $90,000 was declared and payable to stockholders of record. Record dividends payable on common and preferred stock in separate accounts.

2.A 10% common stock dividend was declared. The average market value of the common stock is $18 a share.

3.Assume that net income for the year was $150,000 (record the closing entry) and the board of directors appropriated $70,000 of retained earnings for plant expansion.

(b)Construct the stockholders’ equity section incorporating all the above information.

Solution 15-145


DateAccount NameRefDebit Credit


Show Computation for Transaction #22


Solution 15-145 (cont.)


Show computation for Retained Earnings – Unappropriated:

*Pr. 15-146—Dividends on preferred and common stock.

Rensing, Inc., has $800,000 of 8% preferred stock and $1,200,000 of common stock outstanding, each having a par value of $10 per share. No dividends have been paid or declared during 2009 and 2010. As of December 31, 2011, it is desired to distribute $488,000 in dividends.



How much will the preferred and common stockholders receive under each of the following assumptions:

(a)The preferred is noncumulative and nonparticipating.

(b)The preferred is cumulative and nonparticipating.

(c)The preferred is cumulative and fully participating.

(d)The preferred is cumulative and participating to 12% total.


Solution 15-146





Pr. 15-147—Basic EPS.

Assume that the following data relative to Kane Company for 2010 is available:

Net Income $2,100,000

Transactions in Common Shares Change Cumulative

Jan. 1, 2010, Beginning number 700,000

Mar. 1, 2010, Purchase of treasury shares(60,000)640,000

June 1, 2010, Stock split 2-1640,0001,280,000

Nov. 1, 2010, Issuance of shares120,0001,400,000

8% Cumulative Convertible Preferred Stock

Sold at par, convertible into 200,000 shares of common (adjusted for split).$1,000,000


(a)Compute the basic earnings per share for 2010. (Round to the nearest penny.)

Solution 15-147

Computation of weighted average shares outstanding during the year:

DateActivity DescriptionNumber of Shares

January 1Outstanding Shares

(a)Basic Earnings per share: 



Pr. 17-114—Trading equity securities.

Gordon Company has the following securities in its portfolio of trading equity securities on December 31, 2007:

Cost Fair Value

5,000 shares of Milner Corp., Common$155,000$139,000

10,000 shares of Eddy, Common 182,000 190,000


All of the securities had been purchased in 2007. In 2008, Gordon completed the following securities transactions:

March 1Sold 5,000 shares of Milner Corp., Common @ $31 less fees of $1,500.

April 1Bought 600 shares of Yount Stores, Common @ $45 plus fees of $550.

The Gordon Company portfolio of trading equity securities appeared as follows on December 31, 2008:

Cost Fair Value

10,000 shares of Eddy, Common$182,000$195,500

600 shares of Yount Stores, Common 27,550 25,500



Instructions: Prepare the general journal entries for Gordon Company for:

(a)the 2007 adjusting entry. (c)the purchase of the Yount Stores’ stock.

(b)the sale of the Milner Corp. stock. (d)the 2008 adjusting entry

Solution 17-114

DateAccount NameRefDebit Credit

(a)Show Computation for Transaction (a)

(b)Account NameRefDebitCredit

Show Computation for Transaction (b)

(c)Account NameRefDebitCredit

Show Computation for Transaction (c)

(d)Account NameRefDebitCredit

Show Computation for Transaction (d)

Paper Writing Center
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.


Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.


Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.


Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.


Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.