In: Accounting
The stockholders' equity account balances of Kay Corporation for 2020 are given below: January 1 December 31 Common stock ($12 par, 54,000 shares outstanding) ..... 648,000 720,000 Paid-in capital – common stock ........................ 540,000 594,000 Treasury stock (10,000 share; $16 cost per share) ..... 160,000 36,800 Paid-in capital – treasury stock ...................... 5,000 ? Retained earnings ..................................... 425,000 ? During 2020, Kay Corporation entered into the following transactions: March 23 Re-issued 2,400 of the treasury shares for $13 per share June 9 Re-issued 3,700 of the treasury shares for $22 per share August 15 Issued 6,000 shares of previously un-issued common stock November 2 Re-issued 1,600 of the treasury shares for $14 per share December 18 Declared and paid a $3.75 dividend per share on the outstanding shares of common stock Kay Corporation reported a net income of $293,670 for 2020. Calculate the balance in the paid-in capital - treasury stock account at December 31, 2020.
Cost of the treasurry Stock = 10,000 shares @ $ 16 Cost per shares | ||||
January 01 | ||||
Particulars | Treasurry stock | Paid in Capital - Treasurry stock | ||
Openning Balance | $ 1,60,000 | $ 5,000 | ||
Adjustments: | ||||
March 23 - Re-issue 2,400 shares of @ 13 Per shares | $ -38,400 | $ -7,200 | ||
(2400 Shares X $ 16) | (2400 Shares X $ 3) | |||
June 09, Re-issue 3,700 Shares @ 22 Per shares | $ -59,200 | $ 22,200 | ||
(3700 Shares X $ 16) | (3700 Shares X $6) | |||
Aug, 15 : No effect | $ - | $ - | ||
Nov, 02 : Re-issue of 1600 Shares @ 14 per shares | $ -25,600 | $ -3,200 | ||
(1600 Shares X $ 16) | (1600 Shares X $2) | |||
December - 18 : Declare of Dividend - No effect | $ - | $ - | ||
Closing Balance | $ 36,800 | $ 16,800 | ||
Answer = Balance in Paid in capital - Treasurry Stock Account = $ 16,800 | ||||