Hansen Corporation's balance sheet reported the following: Common stock issued and outstanding - 10,000...

Hansen Corporation's balance sheet reported the following:

Common stock issued and outstanding - 10,000 shares $80,000

Paid-in capital in excess of par – common stock 120,000

Retained earnings 300,000

Prepare the journal entry for the following transactions that occurred this year:

(a) Purchased 200 shares of capital stock to be held as treasury stock, paying $75 per share.

(b) Sold 80 of the shares of treasury stock at $80 per share.

(c) Sold 70 shares of treasury stock at $65 per share.

(d) Retired the remaining shares

Expert Solution

Solution:

	Journal Entries
	Sr. No.	Date	Account Title and explanation	Debit	Credit

	1	A	Treasurry stock (200 Shares X $ 75)	$15,000
			Cash		$15,000
			(To Record the purchase of treasurry Stock)


	2	B	Cash (80 Shares X $ 80)	$6,400
			Treasurry Stock (80 Shares X $ 75)		$6,000
			Addittional Paid in Capital - Treasurry Stock		$400
			(To record the resold of treasury stock)


	3	C	Cash (70 Shares X $ 65)	$4,550
			Addittional Paid in Capital - Treasurry Stock (Balance)	$400
			Retained Earnings	$300
			Treasurry Stock (70 Shares X $ 75)		$5,250
			(To record the resold of treasury stock)


	4	D	Common Stock (50 Shares X $ 8)	$400
			Paid in Capital in excess of par - Common Stock	$3,350
			Treasury Stock (50 Shares X $ 75)		$3,750
			(To record the retire of remainning 50 Shares)

ekkarill92 answered 1 year ago

ROK Corporation's December 31, 2010 balance sheet showed the following: Preferred Stock - $150,000 Common Stock...

ROK Corporation's December 31, 2010 balance sheet showed the following: Preferred Stock - $150,000 Common Stock - $400,000 Paid-in Capital excess of par value - preferred stock - $80,000 Paid-in Capital excess of par value-common stock - $800,000 Retained Earnings - $1,500,000 Treasury stock - $150,000 1. What is the total amount of Paid-in Capital as of December 31? 2. What is the total amount of Stockholders' Equity as of December 31? 3. Which of the following statements is TRUE regarding...

Q#1 Fashion Company reported the following: Common stock, $3 par, 10,000 shares authorized, 5,000 shares issued...

Q#1 Fashion Company reported the following: Common stock, $3 par, 10,000 shares authorized, 5,000 shares issued and outstanding What is the effect of a 10% stock dividend if the market price of the common stock is $30 per share when the dividend is declared? a. Retained earnings in the amount of $15,000 is transferred to the contributed capital accounts. b. Cash decreases $30,000. c. Additional Paid-in Capital decreases $30,000. d. A stock dividend has no effect on any stockholders' equity...

The stockholders' equity section of Night Corporation's balance sheet at January 1 follows: Common stock, $3...

The stockholders' equity section of Night Corporation's balance sheet at January 1 follows: Common stock, $3 par value, 300,000 shares authorized, 60,000 shares 180,000 issued, 6,000 shares in treasury Additional paid-in capital In excess of par value 240,000 From treasury stock 15,000 255,000 Retained earnings 174,000 609,000 Less: Treasury stock (6,000 shares) at cost 69,000 Total Stockholdersâ€™ Equity 540,000 The following transactions affecting stockholdersâ€™ equity occurred during the year: Jan. 8 Issued 15,000 shares of previously unissued common stock...

Balm Co. had 10,000 shares of common stock outstanding as of January 1. The following events...

Balm Co. had 10,000 shares of common stock outstanding as of January 1. The following events occurred during the year: 4/1 Issued 3,000 shares of common stock. 7/1 Distributes 20% stock dividend 10/1 Purchases 4000 shares of stock for treasury 12/1 declares and distributes a 3 to 1 stock split. What is the weighted average number of shares to be used for computing Earnings Per Share?

Smiley Corporation's current sales and partial balance sheet areshown below. This year Sales $ 10,000...

Smiley Corporation's current sales and partial balance sheet are shown below. This year Sales $ 10,000 Balance Sheet: Liabilities Accounts payable $ 1,500 Notes payable $ 3,000 Accruals $ 2,000 Total current liabilities $ 6,500 Long-term bonds $ 2,000 Total liabilities $ 8,500 Common stock $ 1,000 Retained earnings $ 2,500 Total common equity $ 3,500 Total liabilities & equity $ 12,000 Sales are expected to grow by 12% next year. Assuming no change in operations from this year to...

1) Show the balance sheet for a hypothetical bank balance sheet that has common stock with...

1) Show the balance sheet for a hypothetical bank balance sheet that has common stock with book value of 20, loans of 200, Treasury bonds of 20, cash of 10, reserves at the Fed of 30, and deposits. (You must compute the amount of deposits, given that these are the only items on this balance sheet.) 2) What happens to this balance sheet if it experiences a net reduction in deposits of 20. (a) In this setting, suppose that the...

MEMORANDUM ABC Corp. has two classes of stock issued and outstanding – • common stock, and...

MEMORANDUM ABC Corp. has two classes of stock issued and outstanding – • common stock, and • nonvoting preferred stock. Both the common and the preferred stock are traded on the New York Stock Exchange. (The exact number of shares of either class is not relevant to the present issue.) ABC’s board of directors authorized the payment of the following cash dividends during 2019: Common Stock January 2 $5M April 1 $5M July 1 $5M October 1 ...

The Monroe Corporation has 100,000 common shares issued and outstanding. This stock was issued several years...

The Monroe Corporation has 100,000 common shares issued and outstanding. This stock was issued several years ago at a price above the $10 per share par value. During the current year, the board of directors declared a 30 percent stock dividend so that 30,000 new shares were issued to the stockholders when the price of the stock was $30 per share. As a result of this dividend, what reduction was recorded in the reported amount of retained earnings ? __$600,000...

15. Lego, Inc., issued common stock in Year 1. It issued 10,000 shares of 8%, $100...

15. Lego, Inc., issued common stock in Year 1. It issued 10,000 shares of 8%, $100 par value cumulative preferred stock for $110 per share at the beginning of Year 4. It did not pay any dividends during Year 4. In December of Year 5, it declares total dividends of $200,000. How much will the preferred stockholders of Lego receive as dividends in Year 5? • $200,000 • $160,000 • $80,000 • $40,000 16. Marine Corporation issued common stock in...

4. Toussaint Company issued 10,000 shares of its common stock in exchange for merchandise that it...

4. Toussaint Company issued 10,000 shares of its common stock in exchange for merchandise that it will resell. The merchandise had originally cost the other party $250,000 and had a fair value of $300,000 on the date of the exchange. The retail value of the inventory is $520,000. Toussaint Company is not publicly traded and cannot precisely determine the fair value of its stock. It has used some industry averages, however, and applied Black-Scholes-Merton and estimates the fair value of...

Question