Question

Stockholders' Equity

Paid-In Capital:

Common Stock—$5 Par Value; 1,300 shares

authorized, 310 shares issued and outstanding $1,550

Paid-In Capital in Excess of Par—Common 4,650

Total Paid-In Capital 6,200

Retained Earnings 59,000

Total Stockholders' Equity $65,200

DATA TABLE ABOVE

Western Amusements Corporation had the following? stockholders' equity on November 30?:

On December? 30, Western purchased 100 shares of treasury stock at $ 14 per share.

Requirement 1. Journalize the purchase of the treasury stock.? (Record debits? first, then credits. Select the explanation on the last line of the journal entry? table.) Date Accounts and Explanation Debit Credit Dec. 30

Requirement 2. Prepare the? stockholders' equity section of the balance sheet at December? 31, 2018. Assume the balance in retained earnings is unchanged from November 30. Western Amusements Corporation Balance Sheet (Partial) December 31 Stockholders' Equity Paid-In Capital: Total Paid-In Capital Total Stockholders' Equity

Requirement 3. How many shares of common stock are outstanding after the purchase of treasury? stock?

_______shares are outstanding.

Answer 1

• All working forms part of the answer
• Requirement 1

Date	Accounts title	Debit	Credit
Dec-30	Treasury Stock [100 shares x $ 14]	$          1,400.00
	Cash		$                  1,400.00
	(treasury stock acquired at $14 per share0

• Requirement 2

Partial Balance Sheet – 31 Dec

Stockholders’ Equity

Paid in Capital:
Common Stock	$          1,550.00
Paid in Capital in Excess of Par Common Stock	$          4,650.00
Total Paid In capital	$          6,200.00
Retained earnings	$       59,000.00
	$       65,200.00
Less: Treasury Stock	$          1,400.00
Total Stockholder's Equity	$       63,800.00

• Requirement 3

Shares outstanding prior to treasury stock	310
Treasury Stock acquired	-100
No. of shares outstanding after the purchase of Treasury Stock	210

Answer: 210 shares outstanding.