Problem D-I — Treasury Stock

Short Answer

Problem D-I — Treasury Stock
The stockholders' equity section of Carey Co.'s balance sheet at December 31, 2014, was as follows:

Instructions
Prepare journal entries (1, 2, and 4) and show proper disclosure (3) to reflect the following treasury stock transactions showing how each is accounted for under the cost method. (Show computations.)

-Show the proper disclosures in the stockholders' equity section of the balance sheet issued at the end of the first quarter, March 31, 2015. Assume net income of $100,000 during the first quarter.