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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
