A company issues 20,000 common shares for $15 each. Later in the year, the same company issues another 35,000 common shares for $27 each. Two weeks later, it repurchases 5,000 shares for 19 per share. The entry to record the repurchase would be which of the following? Debit Cash for $95,000 & Contributed Capital - Retirement of Common Shares for $18,200, credit Common Shares for $113,200. Debit Common Shares for $95,000 & Retained Earnings for $18,200, credit Cash for $113,200. Debit Common Shares for $95,000, credit Cash for $95,000. Debit Common Shares for $113,200, credit Contributed Capital - Retirement of Common Shares for $18,200 & Cash for $95,000.
A company issues 20,000 common shares for $15 each. Later in the year, the same company issues another 35,000 common shares for $27 each. Two weeks later, it repurchases 5,000 shares for 19 per share. The entry to record the repurchase would be which of the following? Debit Cash for $95,000 & Contributed Capital - Retirement of Common Shares for $18,200, credit Common Shares for $113,200. Debit Common Shares for $95,000 & Retained Earnings for $18,200, credit Cash for $113,200. Debit Common Shares for $95,000, credit Cash for $95,000. Debit Common Shares for $113,200, credit Contributed Capital - Retirement of Common Shares for $18,200 & Cash for $95,000.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 2MC: Cary Corporation has 50,000 shares of 10 par common stock authorized. The following transactions...
Related questions
Question
100%
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Corporate Financial Accounting
Accounting
ISBN:
9781305653535
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning