The equity section of Ankiel Corporation's statement of financial position at December 31, 2013, appears below: During 2014, the following share transactions occurred:
Jan. 18 Issued 50,000 ordinary shares at $30 per share.
Aug. 20 Purchased 25,000 ordinary shares of Ankiel Corporation at $24 per share to be held in the treasury.
Nov. 5 Reissued 9,000 treasury shares for $28 per share.
Instructions
(a) Prepare the journal entries to record the above share transactions.
(b) Prepare the equity section of the statement of financial position for Ankiel Corporation at December 31, 2014. Assume that net income for the year was $100,000 and that no dividends were declared.

Question

The equity section of Ankiel Corporation's statement of financial position at December 31, 2013, appears below:  During 2014, the following share transactions occurred:
Jan. 18 Issued 50,000 ordinary shares at $30 per share.
Aug. 20 Purchased 25,000 ordinary shares of Ankiel Corporation at $24 per share to be held in the treasury.
Nov. 5 Reissued 9,000 treasury shares for $28 per share.
Instructions
(a) Prepare the journal entries to record the above share transactions.
(b) Prepare the equity section of the statement of financial position for Ankiel Corporation at December 31, 2014. Assume that net income for the year was $100,000 and that no dividends were declared.

Quizplus · Accepted Answer

The Answer of The equity section of Ankiel Corporation's statement of financial position at December 31, 2013, appears below:  During 2014, the following share transactions occurred:
Jan. 18 Issued 50,000 ordinary shares at $30 per share.
Aug. 20 Purchased 25,000 ordinary shares of Ankiel Corporation at $24 per share to be held in the treasury.
Nov. 5 Reissued 9,000 treasury shares for $28 per share.
Instructions
(a) Prepare the journal entries to record the above share transactions.
(b) Prepare the equity section of the statement of financial position for Ankiel Corporation at December 31, 2014. Assume that net income for the year was $100,000 and that no dividends were declared.

The Equity Section of Ankiel Corporation's Statement of Financial Position