Lear Flower Shop presented the Stockholders' Equity section of its balance sheet on January 1, 2017, as follows:
$\begin{array}{lr}
\text { Common stock, } \$ 2 \mathrm{par}, 10,000 \text { shares issued and outstanding } & \$ 20,000 \
\text { Additional paid-in capital—common } & 40,000 \
\text { Retained earnings } & \underline{10,000} \
\text { Total stockhol ders' equity } &\underline{ \$ 70,000}
\end{array}$

All common shares were originally sold for $6 each.The following transactions occurred during 2017:
-Reacquired 3,000 shares of common stock at $15 per share on February 16.
-Sold 2,000 shares of treasury stock at $20 per share on June 1.

$$\text { Part 1. Show the effects of the transactions on the accounting equation. }$$
Part 2. How many shares of stock are outstanding at June 1 , immediately after the sale of the 2,000 shares of treasury stock?

Question

Lear Flower Shop presented the Stockholders' Equity section of its balance sheet on January 1, 2017, as follows:
$\begin{array}{lr}
\text { Common stock, } \$ 2 \mathrm{par}, 10,000 \text { shares issued and outstanding } & \$ 20,000 \
\text { Additional paid-in capital—common } & 40,000 \
\text { Retained earnings } & \underline{10,000} \
\text { Total stockhol ders' equity } &\underline{ \$ 70,000}
\end{array}$
  
All common shares were originally sold for $6 each.The following transactions occurred during 2017:
-Reacquired 3,000 shares of common stock at $15 per share on February 16.
-Sold 2,000 shares of treasury stock at $20 per share on June 1.
 
 $$\text { Part 1. Show the effects of the transactions on the accounting equation. }$$  
  Part 2. How many shares of stock are outstanding at June 1 , immediately after the sale of the 2,000 shares of treasury stock?

Quizplus · Accepted Answer

The Answer of Lear Flower Shop presented the Stockholders' Equity section of its balance sheet on January 1, 2017, as follows:
$\begin{array}{lr}
\text { Common stock, } \$ 2 \mathrm{par}, 10,000 \text { shares issued and outstanding } & \$ 20,000 \
\text { Additional paid-in capital—common } & 40,000 \
\text { Retained earnings } & \underline{10,000} \
\text { Total stockhol ders' equity } &\underline{ \$ 70,000}
\end{array}$
  
All common shares were originally sold for $6 each.The following transactions occurred during 2017:
-Reacquired 3,000 shares of common stock at $15 per share on February 16.
-Sold 2,000 shares of treasury stock at $20 per share on June 1.
 
 $$\text { Part 1. Show the effects of the transactions on the accounting equation. }$$  
  Part 2. How many shares of stock are outstanding at June 1 , immediately after the sale of the 2,000 shares of treasury stock?

Lear Flower Shop Presented the Stockholders' Equity Section of Its