ACC - Chapter 13 Graded Homework Acct II

Treasury Stock Transactions
On its December 31, 2016 balance sheet, ABC Co. reported its stockholders equity as follows:
Common stock - $5 par value, 100,000 shares authorized,
50,000 shares issues and outstanding
Paid in Capital in Excess of Par Value, Common
Retained Earnings
Total Stockholders’ Equity

$250,000
125,000
400,000
$775,000

During 2017, the following transactions occurred:
Feb 2
Mar 8
Apr 10

Reacquired 2,500 shares at $7 per share.
Sold 500 shares at $6 per share.
Sold 1,200 shares at $8 per share.

Net income for 2017 amounted to $80,000.
a.

In good form, prepare the journal entries for the three transactions (show your
calculations for the numbers arrived at in your journal entries)
b. Compute the amount of total contributed capital to be reported on the December 31,
2017 balance sheet. (show your calculation)
Stockholders’ Equity Section of Balance Sheet
Prepare in good form the stockholders’ equity section of the balance sheet from the following
selected accounts and balances taken from the adjusted trial balance of XYZ Co as of
December 31, 2016.
Common Stock - $10 par, 100,000 shares
authorized, 55,000 shares issued and
outstanding
Preferred Stock, $100 par value, 9%
cumulative, 20,000 shares authorized, 4,000
shares issued and outstanding
Paid in Capital in Excess of Par Value,
Preferred
Paid in Capital in Excess of Par Value,
Common
Retained Earnings

?
?
15,000
400,000
90,000