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Andruw Jones Comapny had the following stockholders equity as of January 1, 2008.Common Stock, $5 par value, 20000 shares issued $100,000Paid-in-Capital in excess of par 300,000Retained earnings 320,000Total Stockholders equity 720,000
During 2008, the following transactions occurred:
Feb. 1 Jones repurchased 2000 shares of treasury stock at a price of $18 per share.Mar 1 800 shares of treasury stock repurchased above were reissued at $17 per shareMar 18 500 shares of treasury stock repurchased above were reissued at $14 per shareApr 22 600 shares of treasury stock repurchased above were reissued at $20 per share.
(a) Prepare the journal entries to record the treasury stock transactions in 2008, assuming Jones uses the cost method.(b) Prepare the stockholders' equity section as of April 30, 2008. Net income for the first 4 months of 2008 was $110,000.
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