Reference no: EM131756550
Question - Yates Corporation has the following stockholders' equity accounts on January 1, 2018:
Common Stock, $10 par value .......................................... $1,500,000
Paid-in capital in Excess of Par........................................... 200,000
Retained Earnings............................................................... 500,000
Total Stockholders' Equity account.................................$2,200,000
The company uses the cost method to account for treasury stock transactions. During 2018, the following treasury stock transactions occurred:
April 1 Purchased 10,000 shares at $19 per share.
August 1 Sold 4,000 shares at $22 per share.
October 1 Sold 2,000 shares at $15 per share.
Prepare the Stockholders' equity section of the balance sheet for Yates Corporation at December 31, 2018. Assume net income was $110,000 for 2018.