Question

Clemson Company had the following stockholders’ equity as of January 1, 2020.

Common stock, $5 par value, 20,000 shares issued		$100,000
Paid-in capital in excess of par—common stock		300,000
Retained earnings		320,000
Total stockholders’ equity		$720,000

During 2020, the following transactions occurred.

Feb. 1		Clemson repurchased 2,000 shares of treasury stock at a price of $19 per share.
Mar. 1		800 shares of treasury stock repurchased above were reissued at $17 per share.
Mar. 18		500 shares of treasury stock repurchased above were reissued at $14 per share.
Apr. 22		600 shares of treasury stock repurchased above were reissued at $20 per share.

Prepare the stockholders’ equity section as of April 30, 2020. Net income for the first 4 months of 2020 was $130,000. (Enter account name only and do not provide descriptive information.)

Answer 1

Date	Account titles & Explanations					Debit	Credit
1-Feb	Treasury stock					38000
	cash						38,000
1-Mar	Cash					13600
	Retained earnings					1600
	Treasury stock						15200
18-Mar	Cash					7000
	Retained earnings					2500
	Treasury stock						9500
22-Apr	Cash					12000
	Treasury stock						11400
	paid in capital   from Treasury stock						600
	Stockholders Equity section
	Common stock ,$5 par value ,20000shares issued						100,000
	paid in capital in excess of par -CS						300,000
	paid in capital from Treasury stock						600
	total paid in capital						400,600
	Retained earnings						445900
	total paid in capital & retained earnings						846,500
	less:	Treasury stock		(100*19)			-1900
	total stockholder's Equity						844,600