On January 1, Vermont Corporation had 40,000 shares of $10 par value common stock issued and outstanding.  All 40,000 shares had been issued in a prior period at $20.00 per share.  On February 1, Vermont purchased 3,750 shares of treasury stock for $24 per share and later sold the treasury shares for $21 per share on March 1. ​ The journal entry to record the purchase of the treasury shares on February 1 would include a

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 September 14, 10,000 shares of Grey Company are acquired at a price of $100 per share plus a $500…

A: Journal is the basic recording book in accounting. It is the primary book of entry for recording…

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: On February 22, Brett Corporation acquired 180 shares of its $3 par value common stock for $26 each.…

A: The accounting entry on purchase of treasury share at 26 was Debit Treasury stock 4680 and credit…

Q: At the end of its first year of operations, Mulligan Corporation has outstanding shares of 84,000…

A: Prepare the journal entry to record the issuance of stock during the year: Accounts title and…

Q: On February 22, Stewart Corporation acquired 7,200 shares of the 200,000 outstanding shares of…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

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: (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: Helu Corporation was organized on January 1, with an authorization of 1,000,000 ordinary shares with…

A: Shares of the company can be issued at par value or value more than par value or less than par…

Q: On January 2, Year 1, Torres Corporation issued 17,000 shares of $12 par-value common stock for $18…

A: Issue of common stock more than par value: When a company issues common stock at a value more than…

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: Black Diamond Inc. issues 2,500 shares of $1 par valuecommon stock and 1,000 shares of $50 par value…

A: a. Prepare journal entries for issuance of common shares and preferred shares when market value of…

Q: 20) On October 1, Gregory Corporation purchased 4,000 shares of Treasury Stock for $22 per share. On…

A: Treasury stocks are issued when a company repurchases /buyback it's own shares.  When a company…

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: Retro Company is authorized to issue 10,000 shares of 8%, $100 par value preferred stock and 500,000…

A: Preferred Stock = No. of shares x Par value per share = 7,000 shares x $100 = $700,000

Q: St. Marie Company is authorized to issue 1,000,000 shares of $5 par value preferred stock, and…

A: Journal entries: Date Account journal Debit $ Credit $ Jan 31 Cash 1,632,000     Common stock…

Q: At the end of its first year of operations, Mulligan Corporation has outstanding shares of 110,000…

A: The company issues preferred and common securities to raise capital. A fixed dividend is paid on…

Q: Nash Group, Inc. issued 1,000 shares of $10 par common stock in Year 1 for $20 per share. Nash paid…

A: Treasury shares means the share which has been buy back by the company . It will be shown as…

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: On February 22, Stewart Corporation acquired 12,000 shares of the 400,000 outstanding shares of…

A: Under cost method, Investment is recorded  along inclusive of any expenses incurred to acquire.…

Q: Assume that on February 12, First Union Co. purchases for cash 6,000 shares of Gilbert Co. stock at…

A: Total amount paid = (No. of shares x Price per share) + Brokerage fee = (6,000 shares  x $22 per…

Q: On February 22, Stewart Corporation acquired 12,000 shares of the 400,000 outstanding shares of…

A: a.

Q: On February 22, Triangle Corporation acquired 34,000 shares of the 500,000 outstanding common stock…

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

Q: Trans Union Corporation issued 5,000 shares for $50 per share in the current year, and it…

A:

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: A Calculator On January 1, Sunshine Corporation had 38,000 shares of $12 par value common stock…

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

Q: On February 13, Solo Inc. reacquires 50,000 shares of its $1 par value common stock at the current…

A: Financial statements are the recording of business transactions in the various statements which are…

Q: Helu Corporation was organized on January 1, with an authorization of 1,000,000 ordinary shares with…

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

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

A:

Q: On April 1, Blue Devil Inc. has 300,000 shares of $20 par value common stock that are issued and…

A: a. Shares of common stock are issued and outstanding immediately following the stock split: = Common…

Q: Global Marine obtained a charter from the state in January that authorized 1,000,000 shares of…

A:

Q: On January 1, Lorain Corporation had 2,000 shares of $5 par common stock authorized and outstanding.…

A: Treasury stock: Treaseury stock are the shares which are bought back by the company from the open…

Q: On February 14, Marine Company reacquired 7,500 shares of its common stock at $30 per share. On…

A: Treasury stock is the reacquired shares by the company. The company has the right to reissue these…

Q: On February 22, Stewart Corporation acquired 7,200 shares of the 200,000 outstanding shares of…

A: Costing method highlights Under the Costing method cost of the investment in securities is recorded…

Q: On April 1, Kang Corporation purchased back 250 shares of $1 par value common stock for $20 per…

A: Treasury stock: When shares are purchased from the open market by the company then these shares are…

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

A:

Q: The Vogel and Wallis Corporation is authorized to issue 15,000 shares of 10%, $50 par value…

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

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: On May 27, Hydro Clothing Inc. reacquired 75,000 shares of its common stock at $8 per share. On…

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

Q: Marla company issued 150,000 ordinary shares. Of these, 7,500 shares were held as treasury at…

A: The question is based on the concept of Share Capital Accounting. Treasury shares are the shares…

Q: Milo Co. had 795,000 shares of common stock outstanding as of January 1. On May 1, they issued…

A: Firstly, we shall calculate the Shares that were outstanding during the year and the Months for…

Q: Journalize the transactions of February14, March 5, and June 2.

A:

Q: Assume that on February 12, First Union Co. purchases for cash 6,000 shares of Gilbert Co. stock at…

A: Companies which have excess cash or ideal cash can invest in fixed deposit or purchase shares of…

Q: On January 23, 10,000 shares of tolle company are acquired at a price of $30 per share plus a $100…

A: Note: Since requirement is missing, after making necessary reference it is determined that the…

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.