On January 31, Wilderness Resorts Inc. reacquired 22,500 shares of its common stock at $31 per share. On April 20, Wilderness Resorts

Using the following accounts and balances, prepare the Stockholders’ Equity section of the balance sheet. Two hundred fifty thousand shares of common stock are authorized, and 17,500 shares have been reacquired.











Common Stock, $60 par $12,000,0000
Paid-In Capital from Sale of Treasury Stock 320,000
Paid-In Capital in Excess of Par—Common Stock 3,200,000
Retained Earnings 18,500,000
Treasury Stock 1,137,500





Answer:










Stockholders’ Equity
Paid-in capital:
Common stock, $60 par (250,000 shares
authorized, 200,000 shares issued) $12,000,000
Excess of issue price over par 3,200,000 $15,200,000
From sale of treasury stock 320,000
Total paid-in capital $15,520,000
Retained earnings 18,500,000
Total $34,020,000
Deduct treasury stock (17,500 shares at cost) 1,137,500
Total stockholders’ equity $32,882,500



On January 31, Wilderness Resorts Inc. reacquired 22,500 shares of its common stock at $31 per share. On April 20, Wilderness Resorts sold 12,800 of the reacquired shares at $40 per share. On October 4, Wilderness Resorts sold the remaining shares at $28 per share.

Journalize the transactions of January 31, April 20, and October 4.


Answer:









Jan. 31 Treasury Stock (22,500 shares × $31) 697,500
Cash 697,500
Apr. 20 Cash (12,800 shares × $40) 512,000
Treasury Stock (12,800 shares × $31) 396,800
Paid-In Capital from Sale of
Treasury Stock [12,800 shares × ($40 – $31)] 115,200
Oct. 4 Cash (9,700 shares × $28) 271,600
Paid-In Capital from Sale of
Treasury Stock [9,700 shares × ($31 – $28)] 29,100
Treasury Stock (9,700 shares × $31) 300,700