Treasury Stock Transactions
Transactions that affected Barter Company’s stockholders’ equity during 2008, the first year of operations, follow.
(a) Issued 30,000 shares of 9% preferred stock, $20 par, at $26.
(b) Issued 50,000 shares of $3 par common stock at $33.
(c) Purchased and immediately retired 4,000 shares of preferred stock at $28.
(d) Purchased 6,000 shares of its own common stock at $35.
(e) Reissued 1,000 shares of treasury stock at $37.
No dividends were declared in 2008, and net income for 2008 was $185,000.
Instructions:
1. Record each of the transactions. Assume that treasury stock acquisitions are recorded at cost.
2. Prepare the stockholders’ equity section of the balance sheet at December 31, 2008.