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P11-2A Greeve Corporation_Treasury Shares

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Question;P11-2A Greeve;Corporation had the following stockholders? equity accounts on January 1;2011: Common;Stock ($1 par) $400,000, Paid-in Capital in Excess of Par Value $500,000, and;Retained;Earnings $100,000. In 2011, 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.;Greeve;Corporation uses the cost method of accounting for treasury stock. In 2011, the;company reported net income of $60,000.;Instructions;(a) Journalize;the treasury stock transactions, and prepare the closing entry at December 31;2011, for net;income.;(b) Open;accounts for (1) Paid-in Capital from Treasury Stock, (2) Treasury Stock, and;(3) Retained;Earnings. Post to these accounts using J12 as the posting reference.;(c);Prepare the stockholders? equity section for Greeve Corporation at December 31;2011

 

Paper#37365 | Written in 18-Jul-2015

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