M. Mouse Corporation has the following stockholders' equity on December 31, 2019: (I have 30 minutes...

M. Mouse Corporation has the following stockholders' equity on December 31, 2019: (I have 30 minutes to turn this in, please help if available, I'll leave a great review :) )

Common Stock ($11-par value, 200,000 shares authorized, 140,000 shares issued and outstanding	$1,540,000
Additional Paid-In Capital in Excess of Par Value	2,820,000
Total Paid-in Capital	$4,360,000
Retained Earnings	1,920,000
Total Stockholders' Equity	$6,280,000

Required:

Part A: Give the general journal entry required to record the following treasury stock transactions in Workpaper #3.

1. M. Mouse purchased back 30,000 shares of its own common stock as treasury shares for $19 per share cash.
2. M. Mouse re-issued 4,000 treasury shares for $20 per share cash.
3. M. Mouse re-issued 3000 treasury shares for $18 per share cash.
4. M. Mouse re-issued 2,000 treasury shares for $17 per share cash.
5. M. Mouse re-issued 1,000 treasury shares for $16 per share cash.
6. M. Mouse re-issued 4,000 treasury shares for $21 per share cash.
  
  Part B: Answer the following questions as of the end of 2020. Net income for the year is $1,020,000. No other stockholders' equity transactions took place during the year. (You may want to draw T-accounts, enter the beginning balances, and then post your entries).
1. How many shares of common stock are authorized?
2. How many shares of common stock are issued?
3. How many shares of common stock are outstanding?
4. What is Total Paid-In Capital at the end of 2020?
5. What is the Retained Earnings at the end of 2020?
6. What is Total Stockholders' Equity at the end of 2020?

Solutions

Expert Solution

Note:

Shares authorized is constant normally.

Shares issued is wont get changed unless issue of new common shares or cancellation of shares

ekkarill92 answered 2 years ago

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