Select Page
  

Yates Corporation has the following stockholders’ equity accounts on January 1, 2018:Common Stock, $10 par value …………………………………… $1,500,000Paid-in capital in Excess of Par……………………………………. 200,000Retained Earnings……………………………………………………… 500,000Total Stockholders’ Equity account……………………………$2,200,000The 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.