Hansen Inc. engaged in the following transactions during the current Hansen Inc. engaged in the following transactions during the current year: a. Repurchased 13,000 shares of its own $1 par common stock for $14 per share on January 14. b. Sold 2,000 treasury shares to employees for $6 per share on January 31. c. Repurchased 3,000 more shares of the $1 par common stock for $16 per share on July 24. d. Sold the remaining 11,000 shares from the January 14 purchase and 1,200 of the shares from the July 24 purchase to employees for $6.50 per share on August 1. Required: 1. Prepare journal entries for each of these transactions. 2. Determine what the effect on total stockholders’ equity is for each of the four transactions.
Hansen Inc. engaged in the following transactions during the current
Hansen Inc. engaged in the following transactions during the current year:
a. Repurchased 13,000 shares of its own $1 par common stock for $14 per share on January 14.
b. Sold 2,000 treasury shares to employees for $6 per share on January 31.
c. Repurchased 3,000 more shares of the $1 par common stock for $16 per share on July 24.
d. Sold the remaining 11,000 shares from the January 14 purchase and 1,200 of the shares from the July 24 purchase to employees for $6.50 per share on August 1.
Required:
1. Prepare
2. Determine what the effect on total stockholders’ equity is for each of the four transactions.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
