If the cost method is used to record treasury stock transactions, to record the sale of the 5,000 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: On March 31, 20x1, Budoy Co. received 10,000 stock rights from its investment in equity securities…

A: Received stock rights= 10,000 Share rate= ₱60 per share for every 4 rights held Prior-share rate=…

Q: On March 1, 20X5, Rya Corp. issued 1,000 shares of its $20 par value common stock and 2,000 shares…

A: Step 1: Compute the total market value.

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: 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: Boy with luv Co. received 20,000 stocks right to subscribe for new shares at P45 per share for every…

A: Stock rights refers to the instrument which is issued through the companies for providing the…

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: (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: night Corp. holds 20,000 shares of its $10 par common stock as treasury stock reacquired in Year1…

A: Treasury stock is that part of the common stock of the company that is re-purchased by the issuing…

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

A: We have the following information: On January 1, Sweeney Corporation had 40,000 shares of $10 par…

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

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

Q: Knapp Industries began business on January 1, 2018 by issuing all of its 1,600,000 authorized shares…

A: Treasury shares has debit account balance. It would be deducted to determine the stockholders'…

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

A: Requirement a:   Pass necessary journal entry to record the issuance of common stock and preferred…

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: 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: The mosaic corporation issued 10000 shares of $50 par, 9% preferred stock, and received $530000 from…

A: When company for issues share it will receive cash

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: On January 1, Vermont Corporation had 43,000 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 on…

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: The ordinary share balance on December 31, 2021? The preference share balance on December 31, 2021?…

A: Company sells the interest to raise the funds and to raise funds Company sells the shares and the…

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

A:

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: Knapp Industries began business on January 1, 2018 by issuing all of its 1,000,000 authorized shares…

A: The purchase of own shares is known as treasury stock.

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: Culver Corporation purchased from its stockholders 6,000 shares of its own previously issued stock…

A: Account Titles and Explanation Debit Credit Treasury Stock $306,000               Cash (6000*51)…

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: Bashir Inc. issues 2,500 shares of $1 par value common stock and 1,000 shares of $50 par value…

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

Q: Anthem Inc. issues 200,000 shares of stock with a par value of $0.11 for $160 per share. Three years…

A: Stocks of a company are the financial instruments which are issued to raise fund for the company. In…

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: 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: On May 1, Z Company repurchased (bought back) 12,000 shares of its own $2 par common stock as…

A: Working notes:

Q: Elroy Corporation repurchased 3,800 shares of its own stock for $55 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: Darren Company had 600,000 ordinary shares outstanding on January 1, issued 120,000 shares on May 1,…

A: Weighted average number of shares outstanding is the sum of all outstanding shares multiplied by the…

Q: Knapp Industries began business on January 1, 2018 by issuing all of its 1,000,000 authorized shares…

A: Journal Entry - It is record of every business transaction whether it economic or non economic for a…

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: The Sneed Corporation issues 10,000 shares of $50 par preferred stock for cash at $62 per share. The…

A: Cash received = 10,000 shares x $62 = $620,000 Par value per share = $50 Paid in capital in excess…

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.