Long Co. issued 100,000 shares of $10 par common stock for $1,200,000. A year later Long acquired 16,000 shares of its own common stock at $15 per share. Three months later Long sold 8,000 of these shares at $19 per share. If the cost method is used to record treasury stock transactions, to record the sale of the 8,000 treasury shares, Long should credit

Q: Oriole Company has issued 2,500 shares of common stock and 500 shares of preferred stock for a lump…

A: Common stock and Preference stock are two types of stock or shares that is being issued by the…

Q: Bonita Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value…

A: Calculate the total allocation. Journal entry:

Q: Elroy Corporation repurchased 3,600 shares of its own stock for $30 per share. The stock has a par…

A: Total amount of Treasury stock purchased = No. of stock Purchased * Amount per stock = 3600*$30 =…

Q: Familia Ltd. purchased from its shareholders 5,000 shares of its own previously issued shares for…

A: Purchase price of Treasury stock : = $ 250000/5000 shares = $ 50

Q: Elroy Corporation repurchased 3,400 shares of its own stock for $40 per share. The stock has a par…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: The Tornado Truck Body Company decides to repurchase 10,000 shares of its common stock on January…

A: The repurchase of treasury stock will be done at the amount paid to acquire it.

Q: On July 1, Pharoah Company purchases 590 shares of its $5 par value common stock for the treasury at…

A: Treasury Stock - It is reacquired stock which is brought back by the issuing company, reducing the…

Q: Splish Brothers Inc. purchased from its stockholders 6,000 shares of its own previously issued stock…

A: Treasury stock: Shares which are bought back by the company from the open market but not retired…

Q: journal entry to record the issuance, how much should be recorded for Paid-in Capital in Excess of…

A: Given in the question:- 500 Common Stock * $10 per share= $5000 200 Preferred Stock * $ 20 per…

Q: If the cost method is used to record treasury stock transactions, to record the sale of the 5,000…

A: Given information is: Long Co. issued 100,000 shares of  P10 par ordinary shares  for P1,200,000.…

Q: (a) Prepare the journal entry for the issuance assuming the par value of the common stock was $5 and…

A:

Q: On January 1, Tesla had 40,000 shares of $10 par value common stock issued and outstanding. All…

A: A treasury stock means a reacquired stock which is repurchased by the organization or company,…

Q: Rinehart Corporation purchased from its stockholders 5,300 shares of its own previously issued stock…

A: Purchase price of each share = $275,600/5300                                                = $ 52

Q: Graves Corporation issued 50,000 shares of $1 par value common stock. Later that year,Graves…

A:

Q: Skysong Inc. issues 500 shares of $ 10 par value common stock and 100 shares of $ 100 par value…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Llewelyn Company purchased 3,600 shares of its own $8 par value common stock when the market price…

A: To create a journal entry, you enter transaction details into ones company's books. Your journal…

Q: A company issues 500 shares of $10 par value common stock and 200 shares of $100 par value preferred…

A: The lump-sum amount is allocated to the common stock and preferred stock on the basis of the market…

Q: Sunland Company has issued 1,900 shares of common stock and 380 shares of preferred stock for a lump…

A: The stock in which shareholder’s are entitled to received dividend whose amount may vary from time…

Q: On May 3, Zirbal Corporation purchased 4,000 shares of its own stock for $36,000 cash. On November…

A:

Q: On December 1, DOS Corporation issued 1,000 shares of its par ordinary share capital and 2,000…

A: Journal entries are the entries to be recorded in the accounting books of the business for all the…

Q: On December 12, ABC Company purchased 1,000 shares of its $2 par value common stock for $27 each. On…

A: Treasury stock: Shares which are bought back by the company from the open market but not retired…

Q: Coronado Industries has issued 1,500 shares of common stock and 300 shares of preferred stock for a…

A: The issue price of the stock could be issued at par, premium or discount. If the proceed from…

Q: The journal entry to record the purchase of the treasury shares on February 1 would include a

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Ravonette Corporation issued 300 shares of $10 par value common stock and 100 shares of $50 par…

A: Journal entry is a primary entry that records the financial transactions initially.

Q: Splish Brothers Inc. purchased from its stockholders 5,400 shares of its own previously issued stock…

A: Purchase price per share = Total amount paid / No. of shares purchased = $270,000/5400 shares = $50…

Q: Sampson Corp. had 500,000 shares of common stock outstanding at the beginning of the year. The…

A: Solution Concept Basic earning per share =earning available for common shareholders / weighted…

Q: Elroy Corporation repurchased 3,400 shares of its own stock for $40 per share. The stock has a par…

A: Preparing journal entries for treasury stock:

Q: On July 1, Blue Spruce Corp. purchases 550 shares of its $5 par value common stock for the treasury…

A: Cost of treasury stock = 550 shares*$9 Cost of treasury stock = $4,950   Cash received on sale of…

Q: Elroy Corporation repurchased 2,500 shares of its own stock for $35 per share. The stock has a par…

A: Treasury shares are those shares which are being repurchased by the company from its own…

Q: Sunland Company has issued 1,900 shares of common stock and 380 shares of preferred stock for a lump…

A: Stocks are issued at fair value. But, they should record as “par value for share capital” and…

Q: Elroy Corporation repurchased 4,000 shares of its own stock for $50 per share. The stock has a par…

A: Treasury Stock: It refers to the shares that are reacquired by the corporation that is already…

Q: Gotham Inc. issued 10,000 shares of its $2 par value common stock for $25 per share. The journal…

A: Cash (10,000 x $25) 250,000     Common Stock (10,000 x $2)   20,000   Additional Paid-in Capital…

Q: Liberward, Inc., sold and issued 1,000 shares for $15 per share. The book value of the shares was…

A: Shares are a mean of raising capital from the shareholders. Shares can be ordinary shares or…

Q: n January 1, Vermont Corporation had 41,000 shares of $12 par value common stock issued and…

A: Journal entry: This is the first step to record accounts. It is written in the same order in which…

Q: Shamrock Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value…

A: Journal entry: The record of business transactions in a chronological order with equal amounts of…

Q: The balance sheet for Crutcher Corporation reported 200,000 shares outstanding, 300,000…

A: Treasury stock: The shares which were reacquired or bought back by the company, but not formally…

Q: On January 1, Vermont Corporation had 46,700 shares of $10 par value common stock issued and…

A: A journal entry is used to record a business arrangement in a company's accounting records. A…

Q: Ravonette Corporation issued 300 shares of $10 par value common stock and 100 shares of $50 par…

A:

Q: On January 1, Vermont Corporation had 46,400 shares of $9 par value common stock issued and…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: On December 1, DOS Corporation issued 1,000 shares of its ₱10 par ordinary share capital and 2,000…

A: The organization can raise funds for the operation song integrity by issuing common stock, preferred…

Q: Required:   Prepare journal entries to record the preceding treasury stock transactions for West…

A: Under the cost method, the treasury stock is recorded at the repurchased cost. When treasury stock…

Q: Llewelyn Company purchased 1,800 shares of its own $6 par value common stock when the market price…

A: Buyback of own shares: Sometimes company repurchases its own stock shares from the market to improve…

Q: On January 1, Vermont Corporation had 40,000 shares of $10 par value common stock issued and…

A: Treasury stock: Shares which are bought back by the company from the open market but not retired…

Q: Emma Consulting had previously purchased 3,466 shares of treasury stock for $7 per share. Emma then…

A: Given,  3,600 shares purchased for $7 per share Sold 1,225 shares of treasury stock for $13 per…

Q: Blossom Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value…

A: Workings:

Q: Marcy Company had 30,000 shares of common stock at the beginning of the year. On July 1, it issued…

A: Formulas: Weighted average number of shares = Actual shares out standing * Fraction of year…

Q: On July 1, Goetz Corporation purchases 500 shares of its $5 par value common stock for the treasury…

A: Treasury stock = Shares purchased*Cash price Treasury stock = 500*8 Treasury stock = 4000…

Q: The Sneed Corporation issues 10,000 shares of $50 par preferred stock for cash at $75 per share. The…

A: Cash received = 10,000 x $75 = $750,000 Preferred stock = 10,000 x $50 = $500,000 Excess = 10,000 x…

Q: Mad City Corporation purchased from its stockholders 5,000 shares of its own previously issued stock…

A: Journal: Recording of a business transactions in a chronological order.

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.