The following information pertains to JAE Corporation at January 1, Year 1.
Common stock, $10 par, 20,000 shares authorized, 2,000 shares issued and outstanding $20,000
Paid-in capital in excess of par, common stock 15,000
Retained earnings 82,000
JAE Corporation completed the following transactions during Year 1:
Issued 3,000 shares of $10 par common stock for $25 per share.
Repurchased 500 shares of its own common stock for $26 per share.
Resold 200 shares of treasury stock for $30 per share.
Required
a1. Prepare journal entries for these transactions.
a2. Post the journal entries to T-accounts.
b. Prepare the stockholders’ equity section of the balance sheet reflecting these transactions.
