On its December 31,2009,balance sheet,Montrose Corporation reported its stockholders' equity as follows:
$\begin{array}{lr}
\text { Common stock- } \$ 5 \text { par value, } 100,000 \text { shares authorized, }\
50,000 \text { shares issued and outstanding } & \$ 250,000 \
\text { Additional paid-in capital } & 125,000 \
\text { Retained earnings } & \underline{400,000} \
\text { Total stockholders' equity } & \underline{\$ 775,000}
\end{array}$
During 2010,the following transactions occurred:
Reacquired 2,500 shares at $7 per share.
Sold 1,200 shares of treasury stock at $8 per share.
Sold 500 shares of treasury stock at $6 per share.
Net income for 2010 amounted to $80,000.
a. Prepare the entries in journal form for the three transactions involving treasury stock. (Omit explanations.)
b. Compute the amount of total contributed capital to be reported on the December 31, 2010, balance sheet.

Question

On its December 31,2009,balance sheet,Montrose Corporation reported its stockholders' equity as follows:
 $\begin{array}{lr}
\text { Common stock- } \$ 5 \text { par value, } 100,000 \text { shares authorized, }\ 
50,000 \text { shares issued and outstanding } & \$ 250,000 \
\text { Additional paid-in capital } & 125,000 \
\text { Retained earnings } & \underline{400,000} \
\text { Total stockholders' equity } & \underline{\$ 775,000}
\end{array}$
 During 2010,the following transactions occurred:
Reacquired 2,500 shares at $7 per share.
Sold 1,200 shares of treasury stock at $8 per share.
Sold 500 shares of treasury stock at $6 per share.
Net income for 2010 amounted to $80,000. 
a. Prepare the entries in journal form for the three transactions involving treasury stock. (Omit explanations.)
b. Compute the amount of total contributed capital to be reported on the December 31, 2010, balance sheet.

Quizplus · Accepted Answer

The Answer of On its December 31,2009,balance sheet,Montrose Corporation reported its stockholders' equity as follows:
 $\begin{array}{lr}
\text { Common stock- } \$ 5 \text { par value, } 100,000 \text { shares authorized, }\ 
50,000 \text { shares issued and outstanding } & \$ 250,000 \
\text { Additional paid-in capital } & 125,000 \
\text { Retained earnings } & \underline{400,000} \
\text { Total stockholders' equity } & \underline{\$ 775,000}
\end{array}$
 During 2010,the following transactions occurred:
Reacquired 2,500 shares at $7 per share.
Sold 1,200 shares of treasury stock at $8 per share.
Sold 500 shares of treasury stock at $6 per share.
Net income for 2010 amounted to $80,000. 
a. Prepare the entries in journal form for the three transactions involving treasury stock. (Omit explanations.)
b. Compute the amount of total contributed capital to be reported on the December 31, 2010, balance sheet.

On Its December 31,2009,balance Sheet,Montrose Corporation Reported Its Stockholders' Equity