Hawthorne Corporation had the following stockholders equity accounts on January 1, 2021: Ordinary Share...
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Accounting
Hawthorne Corporation had the following stockholders equity accounts on January 1, 2021:
Ordinary Share ($1 par) $400,000,
Share Premium Ordinary $500,000,
Retained Earnings $100,000.
In 2021, the company had the following treasury stock transactions.
Mar. 1 Purchased 5,000 shares at $7 per share.
June 1 Sold 1,000 shares at $10 per share.
Sept. 1 Sold 2,000 shares at $9 per share.
Dec. 1 Sold 1,000 shares at $5 per share.
Hawthorne Corporation uses the cost method of accounting for treasury stock. In 2021, the company reported net income of $80,000. Instructions a. Journalize the treasury stock transactions. b. Prepare the stockholders equity section for Hawthorne Corporation at December 31, 2021.
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