| The following information pertains to Kwon Corp. at January 1, 2010. |
| Common stock, $10 par, 50,000 shares authorized, 2,000 shares issued and outstanding |
$ 20,000 |
| Paid-in capital in excess of par, common stock | 15,000 |
| Retained earnings | 65,000 |
| Kwon Corp. completed the following transactions during 2010: |
| 1. | Issued 2,000 shares of $10 par common stock for $25 per share. |
| 2. | Repurchased 200 shares of its own common stock for $22 per share. |
| 3. | Resold 50 shares of treasury stock for $26 per share. |
1. value:
1.00 points Required information
| Required: |
| (a) | How many shares of common stock were outstanding at the end of the period? |
| Outstanding at the end of the period |
References eBook & Resources WorksheetDifficulty: MediumLearning Objective: 08-5Check my work
2. value:
1.00 points Required information
| (b) | How many shares of common stock had been issued at the end of the period? |
| Issued at the end of the period |
References eBook & Resources WorksheetDifficulty: MediumLearning Objective: 08-5Check my work
3. value:
1.00 points Required information
| (c) |
Organize the transactions data in accounts under the accounting equation. (Amounts to be deducted should be indicated with minus sign. Leave no cells blank – be certain to enter “0” wherever required. Omit the “$” sign in your response.) |
|
Kwon Corporation Accounting Equation |
|||||||||
| Event | Assets | = | Stockholders’ Equity | ||||||
| Cash | = | Comm Stock | + | PIC in Excess CS | + | PIC in Excess TS | – | Treasury Stock |
|
| 1. | |||||||||
| 2. | |||||||||
| 3. | |||||||||
| Bal. |
References eBook & Resources WorksheetDifficulty: MediumLearning Objective: 08-5Check my work
4. value:
1.00 points Required information
| (d) |
Prepare the stockholders’ equity section of the balance sheet reflecting these transactions. (Amounts to be deducted should be indicated with minus sign. Omit the “$” sign in your response) |
| Stockholders’ Equity | ||
| (Click to select)Treasury stockRetained earningsCommon stockDividendsDividends payable | $ | |
| (Click to select)DividendsTreasury stockDividends payablePaid-In Capital in Excess of Par, CSRetained earnings | ||
| (Click to select)Retained earningsDividends payableDividendsPaid-In Capital in Excess of Cost, TSTreasury stock | ||
| Total Paid-In Capital | $ | |
| (Click to select)Retained earningsDividendsCommon stockDividends payablePaid-In Capital in Excess of Cost, TS | ||
| (Click to select)Common stockPlus: Treasury stockRetained earningsPaid-In Capital in Excess of Cost, TSLess: Treasury stock | ||
| Total Stockholders’ equity |
$ |
