Question

Exercise 11-13A Recording and reporting treasury stock transactions LO 11-5 The following information pertains to JAE Corp. at January 1, Year 1: Common stock, $10 par, 20,000 shares authorized, 2,000 shares issued and outstanding $20,000 Paid-in capital in excess of par, common stock 15,000 Retained earnings 82,000 JAE Corp. completed the following transactions during Year 1: Issued 3,000 shares of $10 par common stock for $25 per share. Repurchased 500 shares of its own common stock for $26 per share. Resold 200 shares of treasury stock for $30 per share.
Required a. How many shares of common stock were outstanding at the end of the period?

Answer 1

Answer:

shares outstanding               4,700

Explanation:

We will start from the beginning of the period and we wuill addthe new issued share, subtract the treasury stock and add the amount sold of the treasury stock.

Jan 1st  issued                        2,000

Additional issued                   3,000

repurchased (treasury stock)  (500)

resold                                         200

shares outstanding               4,700

Answer 2

Answer:

Explanation:

Required

a. How many shares of common stock were outstanding at the end of the period?

b. How many shares of common stock has been issued at the end of the period?

c. Prepare Journal entries.

The explanation is given in the picture attached. Thank you