Question

Bohemian Company has 500,000 shares of no par common stock with a stated value of $8 per share issued and outstanding as of January 1, originally issued for $14 per share. During 2018, Bohemian Company had the following transactions involving its own stock: On March 6, acquired 27,965 shares of treasury stock at a cost of $12 per share On April 18, resold 5,280 shares of treasury stock at $19 per share. On June 11, resold an additional 2,210 shares of treasury stock at $10 per share If Bohemian uses the cost method of accounting for treasury stock, what will be the balance in additional paid in capital from treasury stock as a result of these transactions?

Answer 1

Amount paid for the treasury stock on March 6 = $12*27,965 = $335,580

Total Amount realized on the resale of Treasury stock

April 18 = 5280*$19 = $100,320

June 11 = 2210*$10 = $ 22,100

$122,420

cost of treasury stock sold

( $12 * 7,490) (89,880)

Balance in additional paid in capital from treasury stock $32,540

Step-by-step explanation:

Answer 2

$32540

Step-by-step explanation:

The balance in additional paid in capital treasury stock as a result of the transactions is $32540.

The beginning balance was set at 0.

March 6 Acquisition in the treasury stock = 27965 shares × $12

In additional paid capital it is 0.

April 6 Reissued in treasury stock = 5280 shares × $12 while in additional paid capital = 5280 shares × $7 (19-12).

Please kindly see attachment to see the step by step working and the answer.