Question

Bridgeport Company had the following stockholders’ equity as of January 1, 2017.

Common stock, $5 par value, 18,200 shares issued		$91,000
Paid-in capital in excess of par—common stock		299,000
Retained earnings		320,000
Total stockholders’ equity		$710,000

During 2017, the following transactions occurred.

Feb. 1		Bridgeport repurchased 1,990 shares of treasury stock at a price of $17 per share.
Mar. 1		850 shares of treasury stock repurchased above were reissued at $15 per share.
Mar. 18		530 shares of treasury stock repurchased above were reissued at $15 per share.
Apr. 22		580 shares of treasury stock repurchased above were reissued at $19 per share.

Prepare the journal entries to record the treasury stock transactions in 2017, assuming Bridgeport uses the cost method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Prepare the stockholders’ equity section as of April 30, 2017. Net income for the first 4 months of 2017 was $126,200. (Enter account name only and do not provide descriptive information.)

Answer 1

1.

Date	Account title	Debit	Credit
Feb-01	Treasury Stock ($17*1,990)	$ 33,830
	Cash		$ 33,830
Mar-01	Cash (850*$15)	$ 12,750
	Retained earnings	$    1,700
	Treasury Stock ($17*850)		$ 14,450
Mar-18	Cash (530*$15)	$    7,950
	Retained earnings	$    1,060
	Treasury Stock ($17*530)		$    9,010
Apr-22	Cash (580*$19)	$ 11,020
	Treasury Stock ($17*580)		$    9,860
	Paid in capital in excess of par - treasury stock		$    1,160

2.

BRIDGEPORT
Stockholders Equity
As at December 31, 2017
Common Stock, $ par value, 18,200 issued and 18,170 outstanding	$    91,000
Paid in capital in excess of par - common stock	$ 299,000
Paid in capital in excess of par - treasury stock	$      1,160
Total paid in capital	$ 391,160
Retained earnings ($320,000+$126,200-$1,700-$1,060)	$ 443,440
subtotal	$ 834,600
Less: Treasury stock (30 shares of common)	$        (510)
Total stockholders equity	$ 834,090

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