Question

he following information pertains to Sam Corp. as of January 1, Year XXX1:
Common stock, $11 par, 10,000 shares authorized, 2,000 shares issued and outstanding									$22,000
Paid-in capital in excess of par, common stock									$16,100
Retained earnings									$54,500
Sam Corp. completed the following transactions during the year XXX1:
1) Issued 1,150 shares of $11 par common stock for $29 per share on March 1st.
2) Repurchased 170 shares of its own common stock for $26 per share on July 1st.
3) Resold 50 shares of treasury stock for $27 per share on October 1st.
Select ALL statements that are TRUE

	A.	At the end of the year, the treasury stock account had a balance of $3,070
	B.	The balance sheet prepared on the last day of Year XXX1, shows a balance of $30,750 in the account "Paid-in-capital in excess of par: Common stock"
	C.	The balance sheet prepared on the last day of Year XXX1, shows that the number of outstanding shares is3,030
	D.	When 50 shares of treasury stock were reissued, the treasury stock account decreased by $1,300
	E.	Change in cash from equity transactions during the year amounts to $30,280

Answer 1

Balance in Treasury stock :
Number of treasury stock held (170-50)	120
Multiply: Cost per share purchsed	26
balance in treasury stock:		3120
Treasury stock reduced by (50 shares @26)	1300
Number of shares outstanding:
Beginning issued shares		2000
Add: Additional shares issued		1150
Less: Shares held as treasury stock	120
Number of shares outstanding:		3030
Paid in Capital in excess of Par-Common Stock:
Beginning balance			16100
Add: Proceeds from Issued shares (1150*18)	20700
Balance in Paid in capital in excess of Par-Common	36800
Cash flows from Transactions:
Proceeds from Issuance of shares (1150*29)	33350
Add: Proceeds from sale of treasury (50*27)	1350
Less: Purchase of Treasury stock (170*26)	-4420
Cash flows from Transactions:		30280
Answer is:
C. The balance sheet prepared on last day shows that the number of shares outstanding is 3030.
D. When 50 shares of treasury stock were reissued, the treasury stock account decreased by $ 1300.
E. Change in cash from equity transactions during the year amounts to $ 30280.