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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
The shareholders’ equity section of Rodman Corporation as of December 31, 2011, follows:

During 2012, the company entered into the following transactions:
1. Purchased 1,000 shares of treasury stock for $60 per share.
2. As part of a compensation package, reissued half of the treasury shares to executives who exercised stock options for $20 per share.
3. Reissued the remainder of the treasury stock on the open market for $66 per share.
a. Provide the journal entries for each transaction, and prepare the shareholders’ equity section of the balance sheet as of December 31, 2012. Rodman Corporation generated $20,000 in net income during 2012 and did not declare any dividends.
b. What portion of the additional paid-in capital account is attributed to treasury stock transactions?
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