Problem #2 – Treasury stock transactions
Tom’s Lawn Equipment Inc. develops and produces spraying equipment for
lawn maintenance and industrial uses. On June 19 of the current year, Tom’s
Lawn Equipment Inc. reacquired 24,000 shares of its common stock at $64 per
share. On August 30, 19,000 of the reacquired shares were sold at $68 per
share, and on September 6, 3,000 of the reacquired shares were sold at $70.
the transactions of June 19, August 30, and September 6.
b. What is
the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of
the current year?
c. What is
the balance in Treasury Stock on December 31 of the current year?
d. How will
the balance in Treasury Stock be reported on the balance sheet?