Question

The stockholders' equity account balances of ABC Company at January 1, 2023 are given below: January...

The stockholders' equity account balances of ABC Company at
January 1, 2023 are given below:

                                              January 1
Common stock  ...........................      448,000
Paid-in capital – common stock ..........      704,000
Retained earnings .......................      266,000

During January, ABC entered into the following transactions:

January 11:   Re-acquired 21,000 shares of its outstanding
              common stock by paying $19 per share

January 16:   Re-issued 2,200 of shares re-acquired on
              January 11 for $14 per share

January 21:   Re-issued 3,200 of shares re-acquired on
              January 11 for $24 per share

January 26:   Re-issued 4,300 of shares re-acquired on
              January 11 for $10 per share

Calculate the balance in the retained earnings account
after the above four transactions have been recorded.
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Balance in the Retained Earnings Account 232300
Workings:
Debit Credit
Jan 11 Treasury Stock 399000 =21000*19
       Cash 399000
Jan 16 Cash 30800 =2200*14
Retained earnings 11000
      Treasury Stock 41800 =2200*19
Jan 21 Cash 76800 =3200*24
      Treasury Stock 60800 =3200*19
      Paid in Capital from Treasury Stock 16000
Jan 26 Cash 43000 =4300*10
Paid in Capital from Treasury Stock 16000
Retained earnings 22700
      Treasury Stock 81700 =4300*19
Balance in the Retained Earnings Account 232300 =266000-11000-22700
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The stockholders' equity account balances of ABC Company at January 1, 2020 are given below: January...
The stockholders' equity account balances of ABC Company at January 1, 2020 are given below: January 1, 2020 Common stock ......................... 658,000 Paid-in capital – common stock ....... 423,000 Treasury stock ....................... 256,000 Paid-in capital – treasury stock ..... 18,000 Retained earnings .................... 425,000 The common stock account at January 1 consisted of 31,000 shares that were outstanding at a $14 par value per share. The treasury stock account at January 1 consisted of 16,000 shares of common stock that...
At January 1, 2020, Betty DeRose, Inc. reported paid-in capital - treasury stock of $2,000 and...
At January 1, 2020, Betty DeRose, Inc. reported paid-in capital - treasury stock of $2,000 and retained earnings of $49,000. Betty DeRose, Inc. entered into the following transactions during 2020: a. Re-acquired 5,000 shares of its $8 par value common stock by paying $18 per share. b. Re-issued 900 of the shares that were re-acquired in (a) for $21 per share. c. Re-issued 1,200 of the shares that were re-acquired in (a) for $13 per share. d. Re-issued 800 of...
The following selected account balances were taken from ABC Company's general ledger at January 1, 2023...
The following selected account balances were taken from ABC Company's general ledger at January 1, 2023 and December 31, 2023: January 1 December 31 Accounts receivable 56,000 14,000 Short-term notes payable 63,000 37,000 Investments 22,000 60,000 Retained earnings 34,000 51,000 Mortgage payable 126,000 173,000 Unearned revenue 11,000 24,000 Common stock 100,000 175,000 During 2022, ABC Company reported a net income of $47,000 and purchased investments for $38,000 cash. Calculate the net cash flow from financing activities for 2023. If your...
On January 1, 2015, Sigma Inc. had these stockholders’ equity balances. Common Stock, $1 par (3,000,000...
On January 1, 2015, Sigma Inc. had these stockholders’ equity balances. Common Stock, $1 par (3,000,000 shares authorized, 615,000 shares issued and outstanding) $615,000 Paid-in Capital in Excess of Par Value 1,410,000 Retained Earnings 690,000 Accumulated Other Comprehensive Income 60,000 During 2015, the following transactions and events occurred. 1. Issued 54,500 shares of $1 par value common stock for $2 per share. 2. Issued 55,500 shares of common stock for cash at $6 per share. 3. Purchased 19,600 shares of...
On January 1, 2022, Tamarisk, Inc. had these stockholders’ equity balances. Common Stock, $1 par (2,900,000...
On January 1, 2022, Tamarisk, Inc. had these stockholders’ equity balances. Common Stock, $1 par (2,900,000 shares authorized, 705,000 shares issued and outstanding) $705,000 Paid-in Capital in Excess of Par Value 1,530,000 Retained Earnings 694,000 Accumulated Other Comprehensive Income 53,000 During 2022, the following transactions and events occurred. 1. Issued 45,500 shares of $1 par value common stock for $2 per share. 2. Issued 65,000 shares of common stock for cash at $3 per share. 3. Purchased 21,600 shares of...
On January 1, 2022, Shamrock, Inc. had these stockholders’ equity balances. Common Stock, $1 par (2,600,000...
On January 1, 2022, Shamrock, Inc. had these stockholders’ equity balances. Common Stock, $1 par (2,600,000 shares authorized, 680,000 shares issued and outstanding) $680,000 Paid-in Capital in Excess of Par Value 1,480,000 Retained Earnings 694,000 Accumulated Other Comprehensive Income 58,000 During 2022, the following transactions and events occurred. 1. Issued 49,000 shares of $1 par value common stock for $2 per share. 2. Issued 63,000 shares of common stock for cash at $3 per share. 3. Purchased 16,500 shares of...
On January 1, 2016, Gerlach Inc. had the following account balances in its shareholders' equity accounts....
On January 1, 2016, Gerlach Inc. had the following account balances in its shareholders' equity accounts.   Common stock, $1 par, 259,000 shares issued 259,000   Paid-in capital - excess of par, common 518,000 Paid-in capital - excess of par, preferred 145,000   Preferred stock, $100 par, 14,500 shares outstanding 1,450,000   Retained earnings 2,900,000   Treasury stock, at cost, 5,900 shares 29,500 During 2016, Gerlach Inc. had several transactions relating to common stock. January 15: Declared a property dividend of 100,000 shares of Slowdown...
On January 1, 2018, Gerlach Inc. had the following account balances in its shareholders' equity accounts....
On January 1, 2018, Gerlach Inc. had the following account balances in its shareholders' equity accounts. Common stock, $1 par, 257,000 shares issued 257,000 Paid-in capital - excess of par, common 514,000 Paid-in capital - excess of par, preferred 135,000 Preferred stock, $100 par, 13,500 shares outstanding 1,350,000 Retained earnings 2,700,000 Treasury stock, at cost, 5,700 shares 28,500 During 2018, Gerlach Inc. had several transactions relating to common stock. January 15: Declared a property dividend of 100,000 shares of Slowdown...
Stockholders' equity of Ziyech Corporation as of January 1, 2020, is as follows: Common stock, $20...
Stockholders' equity of Ziyech Corporation as of January 1, 2020, is as follows: Common stock, $20 par; issued and outstanding 90,000 shares: $1,800,000 Paid-in capital – excess of par: $900,000 Retained earnings: $760,000 Ziyech had not repurchased shares before. During 2020, Ziyech entered into the following transactions: 1. Acquired 2,500 shares of its stock for $75,000. 2. Sold 2,000 treasury shares at $32 per share. 3. Sold the remaining treasury shares at $20 per share. Assuming no other equity transactions...
3. Jet Corporation had the following balances in its stockholders' equity accounts at December 31, 2019:...
3. Jet Corporation had the following balances in its stockholders' equity accounts at December 31, 2019: Common Stock $5 par, 900,000 shares authorized, 80,000 shares issued, 75,000 shares outstanding $400,000 Paid-in Capital in Excess of Par, Common Stock 1,600,000 Retained Earnings 900,000 Treasury Stock, 5,000 shares (125,000) Total stockholders’ equity $2,775,000 The following transactions occurred during 2020: January 2 Issued 20,000 shares of common stock for $20 per share. May 10 Declared dividends at $0.75 per share. June 10 paid...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT