Question

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 shares that were re-acquired in (a) for $20 per
    share.

e.  Re-issued 1,100 of the shares that were re-acquired in (a) for $17 per
    share.

Calculate the balance in the paid-in capital - treasury stock account after
all five transactions above are recorded.

Answer 1

Calculate the balance in the paid-in capital - treasury stock account after
all five transactions above are recorded.

Beginning balance of paid in capital-Treasury stock	2000
Paid in capital from treasury stock from second transaction (21-18)*900	2700
Paid in capital from treasury stock absorbed by third transaction (18-13)*1200 = 6000 but we can absorb only $4700	-4700
Paid in capital from treasury stock from fourth transaction (20-18)*800	1600
Paid in capital from treasury stock absorbed in fifth transaction (18-17)*1100	-1100
So ending balance after all transaction	500

So answr is $500