E 1 0- 3 9B (L earn i ng Obj ec tiv es 3 , 6: S ho w ho w t reas u ry s t oc k a ff ec t s a co mp a
E10-39B (Learning Objectives 3, 6: Show how treasury stock affects a company; prepare the stockholders’ equity section of a balance sheet) Sagebrush Software had the following selected account balances at December 31, 2012 (in thousands, except par value per share):
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines
Order Paper Now
Inventory………………………………….
$ 652
Common stock, $2.25 par
Property, plant, and
per share, 1,000 shares
equipment, net ………………………
859
authorized, 280 shares
Paid-in capital in excess of par …….
900
issued …………………………
$ 630
Treasury stock,
Retained earnings…………….
2,260
140 shares at cost…………………..
1,540
Accounts receivable, net ……
1,200 Accumulated other
comprehensive income (loss) …..
(727)*
Notes payable …………………
1,188
*Debit balance
▶ Requirements
1. Prepare the stockholders’ equity section of Sagebrush Software’s balance sheet (in thousands).
2. How can Sagebrush have a larger balance of treasury stock than the sum of Common Stock
and Paid-in Capital in Excess of Par?
