Stock Issuance and Treasury StockOmaha, Inc., recorded certain capital stock transactions shown in the following journal entries: (1) issued common stock for $40 cash per share, (2) purchased treasury shares at $50 per share, and (3) sold some of the treasury shares:1Cash437,000 Common stock 43,700 Paid-in capital in excess of par value 393,3002Treasury stock77,000 Cash 77,0003Cash63,360 Treasury stock 52,800 Paid-in capital from treasury stock 10,560 a. How many shares were originally issued?Answersharesb. What was the par value of the shares issued?$Answerper sharec. How many shares of treasury stock were acquired?Answersharesd. How many shares of treasury stock were sold?Answersharese. At what price per share was the treasury stock sold?$Answerper share

a) 10,925b) 4c) 1,540d) 1,056e) 60Explanation:a) Number of shares issued = Cash received / Price per…

Answered: Stock Issuance and Treasury Stock…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Stock Issuance and Treasury Stock

Omaha, Inc., recorded certain capital stock transactions shown in the following journal entries: (1) issued common stock for $40 cash per share, (2) purchased treasury shares at $50 per share, and (3) sold some of the treasury shares:

1	Cash	437,000
	Common stock		43,700
	Paid-in capital in excess of par value		393,300
2	Treasury stock	77,000
	Cash		77,000
3	Cash	63,360
	Treasury stock		52,800
	Paid-in capital from treasury stock		10,560

a. How many shares were originally issued?

Answershares

b. What was the par value of the shares issued?

$Answerper share

c. How many shares of treasury stock were acquired?

Answershares

d. How many shares of treasury stock were sold?

Answershares

e. At what price per share was the treasury stock sold?

$Answerper share

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