Question

Please provide calculations and explainations. Thank You!

Top Tech, Inc. Stockholders' Equity Section at the end of last year was as follows:

Paid In capital:
Preferred Stock, 200,000 Shs. Authorized, 20,000 Outstanding, $15 Par,% dividend rate 300,000

Common Stock, 60,000 Shs. Issued and Outstanding, No Par 2,200,000

Total Paid in Capital 2,500,000
Retained Earnings 554,300
Total Stockholders' Equity 3,054,300

Req. #1, give general journal entries for the following transactions that took place this year:

1 Bought back 1,000 shs of the common stock that were outstanding. Paid $22/Share
2 Sold 800 of the shares bought back in prior transaction. Received $16/Share
3 Sold 4,000 shares of Pfd. Stock for $20/Sh.
4 Give 3rd closing entry with the corp. losing 31,000 for the year.

Req. #2 prepare Top Tech, Inc. Stockholders' Equity Section at the end of this year.

Req. #3 calculate common stock book value per share at the end of last year and at the end of this year.

Answer 1

1	Treasury stock	22000
	Cash		22000
2	Cash	12800	(800*16)
	Retained earnings	4800
	Treasury stock		17600	(800*22)
3	Cash	80000	(4000*20)
	Preferred stock		60000	(4000*15)
	Paid in capital in excess of par preferred		20000
4	Retained earnings	31000
	Income summary		31000
2	Stockhodlers equity
	Preferred stock 24000 shares $15	360000
	Common stock	2200000
	Paid in capital in excess of par -preferred	20000
	Total	2580000
Less	Treasury stock	4400
	Total paid in capital	2575600
	Retained earnings	518500	(554300-4800-31000)
	Total stockholders equity	3094100
3		This year	Last year
	Total stockholders equity	3094100	3054300
Less	Preferred stock 24000 shares $15	360000	300000
Less	Paid in capital in excess of par -preferred	20000	0
	Total common stockholders equity	2714100	2754300
	Nmber of common stock outstanding	60000	60000
	Common stock book value	45.235	45.905