Weygandt, Accounting Principles, 12e
Chapter Thirteen
Solutions to Challenge Exercises
Challenge Exercise 13-1 – Solution
(a)
1. Land ………………………………………………………………………………… 125,000
Common Stock (5,000 X $20) ………………………………………. 100,000
Paid-in Capital in Excess of Par Value-Common Stock …….. 25,000
Challenge Exercise 13-2 – Solution
(a) Mar. 1 Treasury Stock (60,000 X $18)…………………………….. 1,080,000
Cash ……………………………………………………….. 1,080,000
July 1 Cash (15,000 X $19) ………………………………………….. 285,000
Treasury Stock (15,000 X $18) ……………………. 270,000
(b) Stockholders’ equity
Paid-in capital
Common stock, par value, $5 ……………………………… $2,000,000
Additional paid-in capital
In excess of par—
common stock ……………………………………… 1,200,000
Total paid-in capital ………………………….. 3,205,000
Retained earnings …………………………..………………………… 1,400,000
Total paid-in capital and
retained earnings …………………………. 4,605,000
(c) Sept. 1 Cash (10,000 X $14) ………………………………………….. 140,000
Paid-in Capital from Treasury