Question Details

Barrel Corporation's balance sheet 



The stockholders' equity section of Barrel Corporation's balance sheet at December 31, 2012, appears below:
	Stockholders' equity
		Paid-in capital
			Common stock, $10 par value, 400,000 shares authorized; 
			   250,000 issued and outstanding	$2,500,000
		Paid-in capital in excess of par	  1,200,000
				Total paid-in capital	3,700,000
		Retained earnings	     600,000
				Total stockholders' equity	$4,300,000

During 2013, the following stock transactions occurred:
Jan.	18	Issued 50,000 shares of common stock at $32 per share.
Aug.	20	Purchased 25,000 shares of Barrel Corporation's common stock at $26 per share to be held in the treasury.
Nov.	5	Reissued 9,000 shares of treasury stock for $28 per share.

Instructions
(a)	Prepare the journal entries to record the above stock transactions.
(b)	Prepare the stockholders' equity section of the balance sheet for Barrel Corporation at December 31, 2013. Assume that net income for the year was $100,000 and that no dividends were declared.




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