Question

The following information pertains to JAE Corp. at January 1, Year 1: Corrmon stock, $8 par, 8,000 shares authorized, 1,600 shares issued and outstanding Paid-in capital in excess of par, corrmon stock Retained earnings $12,800 16,300 73,400 JAE Corp. completed the following transactions during Year 1: 1. Issued 1,000 shares of $8 par common stock for $29 per share. 2. Repurchased 220 shares of its own common stock for $26 per share. 3. Resold 50 shares of treasury stock for $27 per share. Required a. How many shares of common stock were outstanding at the end of the period? b. How many shares of common stock had been issued at the end of the period? c. Organize the transactions data in accounts under the accounting equation. d. Prepare the stockholders' equity section of the balance sheet reflecting these transactions. Complete this question by entering your answers in the tabs below.

Answer 1

a. 2,430 shares were outstanding at the end of the period.

b. 2,600 shares had been issued at the end of the period.

c.

Jae Corporation Accounting Equation for Year 1
Event	Assets =	Liabilities +	Stockholders Equity
	Cash =		Common Stock	Paid in Capital in Excess: Common Stock	Paid-in Capital in Excess: Treasury Stock	Treasury Stock	Retained Earnings
Beg. bal.			$ 12,800	$ 16,300			$ 73,400
1	29,000		8,000	21,000
2	(5,720)					(5,720)
3	1,350				50	1,300
End. bal.			$ 20,800	$ 37,300	$ 50	(4,420)	$ 73,400

d.

Jae Corporation Balance Sheet ( Partial ) December 31
Stockholders Equity
Common Stock	$ 20,800
Paid-in Capital in Excess: Common Stock	37,300
Paid-in Capital in Excess: Treasury Stock	50
Total Paid-in Capital		58,150
Retained Earnings		73,400
Treasury Stock( at Cost )		(4,420)
Total Stockholders Equity		$ 127,130