III. Value 15 points Yohnalasse Corporation has the following stockholders\' equ
ID: 2594478 • Letter: I
Question
III. Value 15 points Yohnalasse Corporation has the following stockholders' equity accounts on January 1, 2017: Common Stock, $10 par value. Paid-in Capital in Excess of Par. $1,500,000 200,000 Total Stockholders' Equty.. $2.200,000 The company uses the cost method to account for treasury stock transactions. During 2017, the following treasury stock tran sactions occurred: April 1 Purchased 10,000 shares at $18 per share. August 1 Octoberl Sold 4,000 shares at $22 per share. Sold 4,000 shares at $15 per share. Instructions (a) Journalize the treasury stock transactions for 2017. (b) Prepare the Stockholders' Equity section of the balance sheet for Yohnalasse Corporation at December 31, 2014. Assume net income was $110,000 for 2017.Explanation / Answer
Date Account Titles and Explanation Debit Credit April 1, 2017 Treasury Stock 1,80,000 Cash 28,000 Purchased 10,000 shares of treasury stock at $18 August 1, 2017 Cash (4000 shares at $22 selling price) 88,000 Treasury stock (4000 shares at $18 cost) 72,000 Paid-in Capital from Treasury Stock 16,000 Sold the 4000 shares at $22 of treasury stock purchased at $18 October 1, 2017 Cash (4000 shares at $15 selling price) 60,000 Paid-in Capital from Treasury Stock 12,000 Treasury stock (4000shares at $18 cost) 72,000 Sold the 4000 shares at $15 of treasury stock purchased at $18 Stockholders Equity Paid in Capital Common stock $10 par value 1,500,000 Paid in Capital in excess of par-Common 200,000 Paid-in Capital from Treasury Stock 4,000 Total paid in capital 1,704,000 Retained Earnings 610,000 Subtotal 2,314,000 Treasury stock at cost (2000 shares at $18) -36,000 Total stockholders' Equity 2.278,000