Yates Corporation has the following stockholders' equity accounts on January 1, 2018: The company uses the cost method to account for treasury stock transactions. During 2018, the following treasury stock transactions occurred:
April 1 Purchased 10,000 shares at $19 per share.
August 1 Sold 4,000 shares at $22 per share.
October 1 Sold 2,000 shares at $15 per share.
Instructions
(a) Journalize the treasury stock transactions for 2018.
(b) Prepare the Stockholders' Equity section of the balance sheet for Yates Corporation at December 31, 2018. Assume net income was $110,000 for 2018.

Question

Yates Corporation has the following stockholders' equity accounts on January 1, 2018:  The company uses the cost method to account for treasury stock transactions. During 2018, the following treasury stock transactions occurred:
April 1 Purchased 10,000 shares at $19 per share.
August 1 Sold 4,000 shares at $22 per share.
October 1 Sold 2,000 shares at $15 per share.
Instructions
(a) Journalize the treasury stock transactions for 2018.
(b) Prepare the Stockholders' Equity section of the balance sheet for Yates Corporation at December 31, 2018. Assume net income was $110,000 for 2018.

Quizplus · Accepted Answer

The Answer of Yates Corporation has the following stockholders' equity accounts on January 1, 2018:  The company uses the cost method to account for treasury stock transactions. During 2018, the following treasury stock transactions occurred:
April 1 Purchased 10,000 shares at $19 per share.
August 1 Sold 4,000 shares at $22 per share.
October 1 Sold 2,000 shares at $15 per share.
Instructions
(a) Journalize the treasury stock transactions for 2018.
(b) Prepare the Stockholders' Equity section of the balance sheet for Yates Corporation at December 31, 2018. Assume net income was $110,000 for 2018.

Yates Corporation Has the Following Stockholders' Equity Accounts on January