Bramble Company had the following stockholders’ equity as of January 1, 2020. Common stock, $5 par...

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

Common stock, $5 par value, 21,100 shares issued		$105,500
Paid-in capital in excess of par—common stock		304,000
Retained earnings		317,000
Total stockholders’ equity		$726,500

During 2020, the following transactions occurred.

Feb. 1		Bramble repurchased 2,020 shares of treasury stock at a price of $21 per share.
Mar. 1		740 shares of treasury stock repurchased above were reissued at $19 per share.
Mar. 18		520 shares of treasury stock repurchased above were reissued at $14 per share.
Apr. 22		550 shares of treasury stock repurchased above were reissued at $23 per share.

Prepare the journal entries to record the treasury stock transactions in 2020, assuming Bramble 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, 2020. Net income for the first 4 months of 2020 was $121,200. (Enter account name only and do not provide descriptive information.)

Expert Solution

Date	Account title and Explanation	Debit (in $)	Credit (in $)
Feb. - 01	Treasury stock (2,020 shares x $21)	$42,420
	Cash		$42,420
	(To record the Purchase of Treasury Stock)

Mar. - 01	Cash (740 shares x $19)	$14,060
	Retained earnings (Bal. Fig.)	$1,480
	Treasury stock (740 shares x $21)		$15,540
	(To record the Sale of Treasury Stock)

Mar. - 18	Cash (520 shares x $14)	$7,280
	Retained earnings (Bal. Fig.)	$3,640
	Treasury stock (520 shares x $21)		$10,920
	(To record the Sale of Treasury Stock)

Apr. - 22	Cash (550 shares x $23)	$12,650
	Treasury stock (550 shares x $21)		$11,550
	Paid in capital from treasury stock (550 shares x ($23 (-)$21))		$1,100
	(To record the Sale of Treasury Stock)

ekkarill92 answered 2 years ago

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