On its December 31, 2009, balance sheet, Houston Corporation reported its stockholders' equity as follows:
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. No dividends were declared.
Prepare the stockholders' equity section of the balance sheet as it should appear on December 31, 2010.

Question

On its December 31, 2009, balance sheet, Houston Corporation reported its stockholders' equity as follows:
  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. No dividends were declared.
Prepare the stockholders' equity section of the balance sheet as it should appear on December 31, 2010.

Quizplus · Accepted Answer

The Answer of On its December 31, 2009, balance sheet, Houston Corporation reported its stockholders' equity as follows:
  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. No dividends were declared.
Prepare the stockholders' equity section of the balance sheet as it should appear on December 31, 2010.

On Its December 31, 2009, Balance Sheet, Houston Corporation Reported