A company bought back 57,000 shares of its own common stock at $14 per share. Four months later the company sold 20,000 of these shares at $17 per share. If the cost method is used to record treasury stock transactions, what is the balance of the Paid-in Capital from Treasury Stock account (assume its beginning balance is zero) after the resale of the 20,000 treasury shares?

Q: James Corporation earned net income of $90,000 this year. The company began the year with 600 shares…

A: Theory part: EPS: Full form of EPS is Earnings per share. This ratio tells the profit earned on each…

Q: Treasury stock that had been purchased for $4,760 last month was reissued this month for $5,640. The…

A: Treasury stock: The shares which were reacquired or bought back by the company, but not formally…

Q: Elroy Corporation repurchased 3,600 shares of its own stock for $30 per share. The stock has a par…

A: Total amount of Treasury stock purchased = No. of stock Purchased * Amount per stock = 3600*$30 =…

Q: Astro Corporation was started with the issue of 4,100 shares of $10 par stock for cash on January 1,…

A: The income statement shows the financial position of the company whether the business is making a…

Q: The Tornado Truck Body Company decides to repurchase 10,000 shares of its common stock on January…

A: The repurchase of treasury stock will be done at the amount paid to acquire it.

Q: Green Thumb Nursery has 11,000 shares of stock outstanding at a market price of $18 per share. The…

A: 1) 2)The calculation for income before income taxes for the year, under the Cash basis, is…

Q: Summit Apparel has the following accounts at December 31: Common Stock. $1 par value, 1.700,000…

A: Let's Understand some basics Stockholder's Equity is shown on the liability side of the Balance…

Q: f a company issues 10,000 shares of $2 par value common stock at a market price of $30 per share,…

A: Common stock: Common stock represents the share ownership of the public limited company. Holders of…

Q: Assume the issuer incurs $1 million in other expenses to sell 3 million shares at $40 each to an…

A: Number of Shares Issued: 3 millionOffering Price: $40First-day Closing Price: $70

Q: ABC Inc. has 20,000 common shares issued and outstanding as of January 1. On July 1, the company…

A: The ratio analysis helps to analyze the Financial statements of the business. The earnings per share…

Q: A company with 88,000 authorized shares of $8 par common stock issued 30,000 shares at $12.…

A: Retained earnings are the earning which is not distributed among shareholders in the form of…

Q: company issues 10,000 shares of $2 par value common stock at a market price of $30 per share, which…

A: Here company issued 10000 shares at market price of $30, par value of each share is $2

Q: journal entry to record the issuance, how much should be recorded for Paid-in Capital in Excess of…

A: Given in the question:- 500 Common Stock * $10 per share= $5000 200 Preferred Stock * $ 20 per…

Q: During its first year of operations, Cullumber Corporation had these transactions pertaining to its…

A: The Accounting Equation is calculated using the following equation -Assets = Liabilities +…

Q: On February 13, Solar Company declared a cash dividend of $45,000 to be paid on April 30 to…

A: The cash dividend indicates the portion of earnings declared by the company to be paid to its…

Q: On 2/1, Curly's Hair Supply purchased 11,000 shares of treasury stock at $4 per share. On 11/1,…

A: Treasury stock is stock repurchased by the issuer and intended for retirement or resale to the…

Q: ABC Corp has produced its first set of financial results. Ordinary shares in the company were issued…

A: Price earning ratio is financial ratio. This is also known as PE ratio. It shows the relationship…

Q: Given the following information answer the three questions below. Brunleigh Corporation earned net…

A: EARNING PER SHAREEarning Per Share is the Ratio Between Net Operating Income for Common Shareholders…

Q: Astro Corporation was started with the issue of 4,800 shares of $9 par stock for cash on January 1,…

A: Common Stock : 4800 shares x $ 9 per stock = $ 43,200 Additional Paid in Capital : 4800 shares x $ 7…

Q: Ecker Company reports $1,425,000 of net income and declares $199,500 of cash dividends on its…

A: Basic earnings per share  is calculated by dividing total net income available to common…

Q: Larkspur, Inc. has 6,700 shares of common stock outstanding. It declares a $2 per share cash…

A: Dividend declared and paid: The majority of dividends are cash dividends, which are distributions…

Q: Prior to June 30, a company has never had any treasury stock transactions. A company repurchased 100…

A: Shares repurchased=Number of shares×Per share=100×$40=$4,000

Q: On May 10, Cheyenne Corp. issues 1,400 shares of $5 par value common stock for cash at $15 per…

A: Accounting equation is a mathematical equation that shows relationship between assets, liabilities…

Q: Sheridan Corporation purchased from its stockholders 5,900 shares of its own previously issued stock…

A: When the shares are bought back from the existing shareholders they are referred to as treasury…

Q: Elroy Corporation repurchased 3,900 shares of its own stock for $35 per share. The stock has a par…

A: Treasury stock is the shares bought back by the company which was already issued in the market at…

Q: A company with 94,000 authorized shares of $7 par common stock issued 36,000 shares at $16.…

A: Given that: Issued common shares = 36,000 shares Market price per share = $32 per share

Q: Bob’s Standard Station has 15,000 shares of stock outstanding at a market price of $15 a share. The…

A: Earning per share(EPS) is generally the interest to present the present or prospective stock holders…

Q: Treasury stock that had been purchased for $4,166 last month was reissued this month for $5,455. The…

A: Treasury stock: Treaseury stock are the shares which are bought back by the company from the open…

Q: Use the following information about SV Inc. to calculate the company’s Cost of Capital.   The stock…

A: Given,  Three projects A, B and C with betas and expected return

Q: During its first year of operations, Crane Corporation had these transactions pertaining to its…

A: ACCOUNTING EQUATIONAccounting Equation is a Financial Accounting Technique which represents the…

Q: Sunshine Clothing Company issues 1,000 shares of $1 par value common stock at $30 per share. Later…

A: When a company purchases its own stock, it is referred to as treasury stock. This repurchase can…

Q: Larkspur, Inc. has 6,700 shares of common stock outstanding. It declares a $2 per share cash…

A: First, compute the cash dividends as shown below: Cash dividends = 6,700*$2 Cash dividends = $13,400…

Q: Elroy Corporation repurchased 2,100 shares of its own stock for $55 per share. The stock has a par…

A: The treasury stock includes the own shares of the company repurchased from the sharesholders. The…

Q: Treasury stock that had been purchased for $3,908 last month was reissued this month for $5,262. The…

A: Introduction: A journal entry is a record of a business deal in the accounting system of the…

Q: At the beginning of the current year, SCARLET Company's issued and outstanding shares total 100,000…

A: What is meant by Stock Split? As the name suggests, when one stock is split into more stocks…

Q: Elroy Corporation repurchased 3,300 shares of its own stock for $55 per share. The stock has a par…

A: Solution Given Number of repurchased shares 3300 Repurchase price $55 Number of…

Q: Astro Corporation was started with the issue of 5.300 shares of $11 par stock for cash on January 1,…

A: Net income = Sales - expense           = 69,000 - 46,230           = 22,770   Retained earnings =…

Q: rior to June 30, a company has never had any treasury stock transactions. A company repurchased 100…

A: Treasury stock refers to shares of a company's own stock that it has repurchased or bought back from…

Q: A company has 10,000 shares of $10 par common stock outstanding. Prepare entries to record the…

A: The journal keeps the record of the transactions on regular basis. The treasury stock includes the…

Q: Ridgetown Corporation started the year with 50,000 common shares outstanding. On April 1st,…

A: • Weighted average number of common shares from January to March: For opening balance  = 50,000×3/12…

Q: Altoona Company began the year with 300, 000 shares of $4 par common stock. On May 1, they issued…

A: Weighted average shares refer to the total number of shares outstanding throughout a specific time…

Q: Astro Corporation was started with the issue of 5,500 shares of $11 par stock for cash on January 1,…

A: Income statement:An income statement stands for the statement that shows profits and loss of the…

Q: On June 1, Sage Hill Inc. Issues 2.500 shares of no-par common stock at a cash price of $7 per…

A: Lets understand the basics. As per balance sheet equation, total asset is always equal to total…

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.