Swifty Corporation had the following stockholders’ equity accounts on January 1, 2019: Common Stock ($4 par)...

Swifty Corporation had the following stockholders’ equity accounts on January 1, 2019: Common Stock ($4 par) $404,600, Paid-in Capital in Excess of Par—Common Stock $212,680, and Retained Earnings $109,060. In 2019, the company had the following treasury stock transactions.

Mar.	1	Purchased 6,650 shares at $9 per share.
June	1	Sold 1,400 shares at $12 per share.
Sept.	1	Sold 1,020 shares at $11 per share.
Dec.	1	Sold 1,330 shares at $6 per share.

Swifty Corporation uses the cost method of accounting for treasury stock. In 2019, the company reported net income of $34,950.

Expert Solution

Journal Entries:

Date	Particulars	Debit ($)	Credit ($)
Mar 1	Treasury Stock ($4)	26,600
	Paid in Capital in excess of par ($5)	33,250
	Cash ($9)		59,850

Jun 1	Cash ($12)	16,800
	Treasury Stock ($4)		5,600
	Paid in Capital in excess of par ($8)		11,200

Sep 1	Cash ($11)	15,400
	Treasury Stock ($4)		4,080
	Paid in Capital in excess of par ($7)		7,140

Dec 1	Cash ($6)	7,980
	Treasury Stock ($4)		5,320
	Paid in Capital in excess of par ($2)		2,660

Summary of Shareholders' Equity:

Particulars	($)	($)
Common Stock:
Beginning Balance	404,600
Less: Treasury Stock [26,600-5,600-4,080-5,320]	(11,600)
		393,000
Paid in Capital in Excess of Par - Common Stock:
Beginning Balance	212,680
Less: Adjustments during the year	(12,250)
		200,430
Retained Earnings:
Beginning Balance	109,060
Add: Net Income	34,950
		144,010
Total Shareholders' Equity		737,440

ekkarill92 answered 1 year ago

On January 1, 2019, Rodgers Corporation had the following stockholders’ equity accounts: Common Stock ($4 par...

On January 1, 2019, Rodgers Corporation had the following stockholders’ equity accounts: Common Stock ($4 par value, 200,000 shares issued and outstanding) $ 800,000 Paid-in Capital in Excess of Par Value 2,000,000 Retained Earnings 1,620,000 REQUIRED: For each of the following events, record the necessary journal entry in chronological order taking into account the previous transaction. Show your calculations for potential partial credit. In addition, show the updated number of outstanding...

Concord Corporation had the following stockholders’ equity accounts on January 1, 2019: Common Stock ($5 par)...

Concord Corporation had the following stockholders’ equity accounts on January 1, 2019: Common Stock ($5 par) $514,200, Paid-in Capital in Excess of Par—Common Stock $216,830, and Retained Earnings $104,440. In 2019, the company had the following treasury stock transactions. Mar. 1 Purchased 5,560 shares at $9 per share. June 1 Sold 1,410 shares at $13 per share. Sept. 1 Sold 1,200 shares at $11 per share. Dec. 1 Sold 1,050 shares at $6 per share. Concord Corporation uses the cost...

Swifty Company had the following stockholders’ equity as of January 1, 2017. Common stock, $5 par...

Swifty Company had the following stockholders’ equity as of January 1, 2017. Common stock, $5 par value, 18,400 shares issued $92,000 Paid-in capital in excess of par—common stock 295,000 Retained earnings 313,000 Total stockholders’ equity $700,000 During 2017, the following transactions occurred. Feb. 1 Swifty repurchased 1,970 shares of treasury stock at a price of $20 per share. Mar. 1 770 shares of treasury stock repurchased above were reissued at $18 per share. Mar. 18 510 shares of treasury stock...

On January 1, 2017, Getsi Corporation had the following stockholders’ equity accounts. Common Stock ($10 par...

On January 1, 2017, Getsi Corporation had the following stockholders’ equity accounts. Common Stock ($10 par value, 100,000 shares issued and outstanding) $1,000,000 Paid-in Capital in Excess of Par—Common Stock 200,000 Retained Earnings 450,000 During the year, the following transactions occurred. Jan. 15 Declared a $1 cash dividend per share to stockholders of record on January 31, payable February 15. Feb. 15 Paid the dividend declared in January. Mar. 1 Issued 10,000 shares of common stock at $12 per share....

On January 1, 2020, Agassi Corporation had the following stockholders’ equity accounts. Common Stock ($10 par...

On January 1, 2020, Agassi Corporation had the following stockholders’ equity accounts. Common Stock ($10 par value, 50,000 shares issued and outstanding) $500,000 Paid-in Capital in Excess of Par—Common Stock 495,000 Retained Earnings 635,000 During 2020, the following transactions occurred. Jan. 15 Declared and paid a $1.05 cash dividend per share to stockholders. Apr. 15 Declared and paid a 10% stock dividend. The market price of the stock was $13 per share. May 15 Reacquired 2,200 common shares at a...

On January 1, 2014, Geffrey Corporation had the following stockholders’ equity accounts. Common Stock ($24 par...

On January 1, 2014, Geffrey Corporation had the following stockholders’ equity accounts. Common Stock ($24 par value, 70,000 shares issued and outstanding) $1,680,000 Paid-in Capital in Excess of Par—Common Stock 193,600 Retained Earnings 636,900 During the year, the following transactions occurred. Feb. 1 Declared a $3 cash dividend per share to stockholders of record on February 15, payable March 1. Mar. 1 Paid the dividend declared in February. Apr. 1 Announced a 2-for-1 stock split. Prior to the split, the...

On January 1, 2020, Crane Corporation had the following stockholders’ equity accounts. Common Stock ($26 par...

On January 1, 2020, Crane Corporation had the following stockholders’ equity accounts. Common Stock ($26 par value, 56,500 shares issued and outstanding) $1,469,000 Paid-in Capital in Excess of Par—Common Stock 200,000 Retained Earnings 611,000 During the year, the following transactions occurred. Feb. 1 Declared a $2 cash dividend per share to stockholders of record on February 15, payable March 1. Mar. 1 Paid the dividend declared in February. Apr. 1 Announced a 2-for-1 stock split. Prior to the split, the...

Ayayai Corporation had the following stockholders’ equity accounts on January 1, 2020: Common Stock ($5 par)...

Ayayai Corporation had the following stockholders’ equity accounts on January 1, 2020: Common Stock ($5 par) $500,000, Paid-in Capital in Excess of Par—Common Stock $200,000, and Retained Earnings $120,000. In 2020, the company had the following treasury stock transactions. Mar. 1 Purchased 5,500 shares at $9 per share. June 1 Sold 1,000 shares at $13 per share. Sept. 1 Sold 1,000 shares at $11 per share. Dec. 1 Sold 1,500 shares at $7 per share. Ayayai Corporation uses the cost...

On January 1, 2017, Indigo Corporation had these stockholders’ equity accounts. Common Stock ($ 10 par...

On January 1, 2017, Indigo Corporation had these stockholders’ equity accounts. Common Stock ($ 10 par value, 81,500 shares issued and outstanding) $ 815,000 Paid-in Capital in Excess of Par Value 503,000 Retained Earnings 635,000 During the year, the following transactions occurred. Jan. 15 Declared a $ 0.40 cash dividend per share to stockholders of record on January 31, payable February 15. Feb. 15 Paid the dividend declared in January. Apr. 15 Declared a 10% stock dividend to stockholders of...

On January 1, 2017, Concord Corporation had these stockholders’ equity accounts. Common Stock ($ 10 par...

On January 1, 2017, Concord Corporation had these stockholders’ equity accounts. Common Stock ($ 10 par value, 75,500 shares issued and outstanding) $ 755,000 Paid-in Capital in Excess of Par Value 484,500 Retained Earnings 685,000 During the year, the following transactions occurred. Jan. 15 Declared a $ 0.40 cash dividend per share to stockholders of record on January 31, payable February 15. Feb. 15 Paid the dividend declared in January. Apr. 15 Declared a 10% stock dividend to stockholders of record on...

Question