Recording and reporting treasury stock transactions
Carter Corporation reports the following information in its January 1, 2010, balance sheet:
|
Stockholders’ equity |
|
|
Common stock, $10 par value, |
|
|
50,000 shares authorized, 30,000 shares issued and outstanding |
$300,000 |
|
Paid in capital in excess of par value |
150,000 |
|
Retained earnings |
100,000 |
|
Total stockholders’ equity |
$550,000 |
During 2010, Carter was affected by the following accounting events.
1. Purchased 1,000 shares of treasury stock at $20 per share.
2. Reissued 600 shares of treasury stock at $22 per share.
3. Earned $64,000 of cash service revenues.
4. Paid $38,000 of cash operating expenses.
Required
Prepare the stockholders’ equity section of the year end balance sheet.