how to calculate paid-in capital in excess of par
Asked Jan 31, 2010, 06:48 AM
Using Par Value Method what is the amount that should appear on Stockholders' Equity for Paid-in Excess of Par for the following:
Issued 10,000 shares of common stock, $1par, at $15 on 1/1/10. Net income for year = $30,000.
During 2011 following transactions occurred:
Reacquired 1000 shares common stock @ $40per share
Sold 200 shares of treasury stock at $50 per share
Sold 500 shares of treasury stock at $34 per share
Retired remaining 300 shares of treasury stock
I was able to figure out the journal entries for each but when I get to the stockholder's statement I don't understand how the book arrived at $126,000 for Paid-in Capital in excess of Par.