The stockholders' equity section of Piper Corporation's balance sheet at December 31, 2013, appears below:
Stockholders' equity
Paid-in capital
Common stock, $10 par value, 400,000 shares authorized; During 2014, the following stock transactions occurred:
Jan. 18 Issued 80,000 shares of common stock at $23 per share.
Aug. 20 Purchased 20,000 shares of Piper Corporation's common stock at $25 per share to be held in the treasury.
Instructions
(a) Prepare the journal entries to record the above stock transactions.
(b) Prepare the stockholders' equity section of the balance sheet for Piper Corporation at December 31, 2014. Assume that net income for the year was $150,000 and that no dividends were declared.

Question

The stockholders' equity section of Piper Corporation's balance sheet at December 31, 2013, appears below:
Stockholders' equity
Paid-in capital
Common stock, $10 par value, 400,000 shares authorized;  During 2014, the following stock transactions occurred:
Jan. 18 Issued 80,000 shares of common stock at $23 per share.
Aug. 20 Purchased 20,000 shares of Piper Corporation's common stock at $25 per share to be held in the treasury.
Instructions
(a) Prepare the journal entries to record the above stock transactions.
(b) Prepare the stockholders' equity section of the balance sheet for Piper Corporation at December 31, 2014. Assume that net income for the year was $150,000 and that no dividends were declared.

Quizplus · Accepted Answer

The Answer of The stockholders' equity section of Piper Corporation's balance sheet at December 31, 2013, appears below:
Stockholders' equity
Paid-in capital
Common stock, $10 par value, 400,000 shares authorized;  During 2014, the following stock transactions occurred:
Jan. 18 Issued 80,000 shares of common stock at $23 per share.
Aug. 20 Purchased 20,000 shares of Piper Corporation's common stock at $25 per share to be held in the treasury.
Instructions
(a) Prepare the journal entries to record the above stock transactions.
(b) Prepare the stockholders' equity section of the balance sheet for Piper Corporation at December 31, 2014. Assume that net income for the year was $150,000 and that no dividends were declared.

The Stockholders' Equity Section of Piper Corporation's Balance Sheet at December