Problem 15-2 (Part Level Submission) Marin Company had the following stockholder

Question

Problem 15-2 (Part Level Submission) Marin Company had the following stockholders' equity as of January 1, 2017 Common stock, $5 par value, 19,100 shares issued Paid-in capital in excess of par-common stock Retained earnings $95,500 304,000 314,000 $713,500 loial sikhokkirs' exquiiy During 2017, the following transactions occurred Feb. 1 Marin repurchased 2,150 shares of treasury stock at a price of $20 per share. Mar. 1 720 shares of treasury stock repurchased above were reissued at $18 per share. Mar. 18 530 shares of treasury stock repurchased above were reissued at $13 per share. Apr. 22 630 shares of treasury stock repurchased above were reissued at $22 per share.

Explanation / Answer

stock holders equity section as of April 30 2017:

note:

paid in capital from treasury stock arised when treasury stock is sold at a price greater than purchase price:

here on apr 22 630 shares of treasury stock were issued @$22.

i.e ($22 - $20) =>$2 more than purchase price, so the paid in capital from treasury stock balance will be = $2 * 630 shares=>$1,260

common stock $95,500 paid in capital in excess of par common stock 304000 paid in capital from treasury stock (see note) 1,260 total paid in capital 400,760 retained earnings 438,450 839,210 less: Treasury stock 5400 total stockholder's equity 833,810

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