This is an intermediate accounting question about Stockholder'sEquity. (Chp15)
- Todd's 12-31-14 balance sheet reported:
Common stock outstanding: 600,000 shares, par $1per share $600,000
Paid-in capital in excess of par value 2,400,000
Retained earnings 30,000,000
The following transactions occurred this year:
- During February 2015, Todd purchased 200,000 shares of itscommon stock and paid $10 per share. This was Todd’s first purchaseof treasury stock.
- During April 2015, Todd sold 100,000 of the treasury shares for$9.50 per share.
- During May 2015, Todd sold 50,000 of the treasury shares for$10.25 per share.
- During July 2015, Todd purchased another 50,000 shares of itscommon stock and paid $9.95 per share.
- During August 2015, Todd sold 80,000 of the treasury shares for$10.50 per share.
- During September 2015, Todd purchased another 10,000 shares ofits common stock and paid $11 per share.
- During December 2015, Todd sold 15,000 of the treasury sharesfor $15 per share.
Assume Todd uses a FIFO method to account forcost of treasury shares it reissues. Prepare the entry for each ofthese transactions under the cost method ofaccounting for treasury stock.
