Account for treasury stock using cost method

Assignment Help Accounting Basics

Reference no: EM13155592

The following is a summary of all relevant transactions of Vicario Corporation since it was organized in 2010.

In 2010, 15000 shares were authorized and 7000 shares of common stock ($50 par value) were issued at at price of $57. In 2011, 1000 shares were issued as a stock dividend when the stock was selling for $60. Three hundred shares of common stock were bought in 2012 at a cost of $64 per share. These 300 shares are still in the company treasury.

In 2011, 10000 preferred shares were authorized and the company issued 5000 of them ($100 par value) at $113. Some of the preferred stock was reacquired by the company and later reissued for $4700 more than it cost the company.

The corporation has earned a total of $610000 in net income after income taxes and paid out a total of $312600 in cash dividends since incorporation.

Instructions:

Prepare the stockholder's equity section of the balance sheet in proper form for Vicario Corporation as of December 31, 2012. Account for treasury stock using the cost method.

Reference no: EM13155592

Questions Cloud

You don''t have a population standard : You don't have a population standard deviation but you have sample data. Calculate a sample mean and standard deviation and use the sample standard deviation value to complete the inferential test.

Find the first order statistics at time instance three : Find the first order statistics at time instance 3. Find the probability at time instance k,the person is at the location m steps to the right of the origin.

Calculate the quantity in grams of formic acid : calculate the quantity in grams of formic acid and sodium formate necessary to make 500 mL of a buffer that has a formic acid concentration of .75 M and a sodium formate concentration of .75 M

How might the university administrator lure the college : How might the university administrator lure the college athlete to choose them over others? Would this type of price control be considered a price floor, a price ceiling, or neither?

Account for treasury stock using cost method : Prepare the stockholder's equity section of the balance sheet in proper form for Vicario Corporation as of December 31, 2012. Account for treasury stock using the cost method.

Calculate the number of lead ions present in water : The EPA limit for lead in the water supply is 15 parts per billion by mass. Calculate the number of lead ions present in 1.00 kg of water that is at the EPA limit for lead.

What is the maximum amount of money this bank could create : If a single bank faces a required reserve ratio of 20%, has total reserves of $500,000, and checkable deposit liabilities of $400,000, what is the MAXIMUM amount of money this bank could create (add to the money supply)?

Estimate of the standard deviation : Compute an estimate of the standard deviation of y when x = 8. Develop a 95% confidence interval for the expected value of y when x= 8.

Cost and sales price : Wilson Corp. purchased its own par value stock on January 1, 2007 for $20,000 and debited the treasury stock account for the purchase price. The stock was subsequently sold for $12,000. The $8,000 difference between the cost and sales price should..

User Account

All Pages