Sleepy Times Corp.'s common stock has a $1 par value. On January 1, 2010, Sleepy Time's had 750,000 authorized shares, of which 450,000 were issued and outstanding. The following treasury stock transactions were incurred by Sleepy Time during 2010.
April 2 Bought 13,000 shares of its own common stock for $32 per share.
May 7 Sold 5,000 shares of treasury stock for $37 per share.
June 15 Sold 4,000 shares of treasury stock to employees for $27 per share.
Aug. 17 Sold 2,000 shares of treasury stock for $29 per share.
Sept. 24 Sold 500 shares of treasury stock for $34 per share.
Required:
a. Prepare journal entries for the treasury stock transactions.
b. How many shares of common stock were outstanding at December 31, 2010?

Question

Quizplus · Accepted Answer

The Answer of Sleepy Times Corp.'s common stock has a $1 par value. On January 1, 2010, Sleepy Time's had 750,000 authorized shares, of which 450,000 were issued and outstanding. The following treasury stock transactions were incurred by Sleepy Time during 2010.
April 2 Bought 13,000 shares of its own common stock for $32 per share.
May 7 Sold 5,000 shares of treasury stock for $37 per share.
June 15 Sold 4,000 shares of treasury stock to employees for $27 per share.
Aug. 17 Sold 2,000 shares of treasury stock for $29 per share.
Sept. 24 Sold 500 shares of treasury stock for $34 per share.
Required:
a. Prepare journal entries for the treasury stock transactions.
b. How many shares of common stock were outstanding at December 31, 2010?