Business
Engineering
Math
Science
Social Science
Cornerstones of Financial Accounti...
Solutions
Cornerstones of Financial Accounti...
21. A corporation repurchases 10,000 shares of its common stock at $7 per share and later resells it for $11 per share. What is the affect on the income statement of this resell?
Concept introduction:
Treasury stock:
Treasury stock is the shares bought back by the company itself. A company may purchase its own shares and the shares bought back are called treasury stock. The journal entries are made at the time of sale and purchase of treasury stock as follows:
- For Purchase of treasury stock:
Treasury stock account is debited and cash account is credited with the cost of treasury stock purchased.
- For Sale / Reissuance of treasury stock:
Cash account is debited for the amount received on sale of treasury stock and the Treasury stock account is credited with the cost of treasury stock. For the difference in cost and sale value, Additional Paid in Capital and Retained earnings accounts are adjusted.
To indicate:
The effect of resell of treasury stock on the income statement.
Treasury stock is the shares bought back by the company itself. A company may purchase its own shares and the shares bought back are called treasury stock. The journal entries are made at the time of sale and purchase of treasury stock as follows:
- For Purchase of treasury stock:
Treasury stock account is debited and cash account is credited with the cost of treasury stock purchased...
Chapter 10 Solutions
Additional Business Solutions
Find more solutions based on key concepts
Show solutions addDepreciation by two methods A storage tank acquired at the beginning of the fiscal year at a cost of 90,000 has...
Corporate Financial Accounting
Describe the activities performed by five modules of the SAP system.
Accounting Information Systems
Errors in trial balance The following preliminary unadjusted trial balance of Ranger Co., a sports ticket agenc...
Financial & Managerial Accounting
Why should policymakers think about incentives?
Principles of Microeconomics (MindTap Course List)
The present value of a perpetuity is equal to the payment on the annuity, PMT, divided by the interest rate, I:...
Fundamentals of Financial Management (MindTap Course List)
From the Google Finance site, use the DuPont analysis to determine the total assets turnover ratio for each of ...
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
CONCEPTUAL: RETURN ON EQUITY Which of the following statements is most correct? (Hint: Work Problem 4-16 before...
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
Persuasive Organizational Message Flowing Downward: Avoiding Costly. As office manager of a Sacramento footwear...
Essentials of Business Communication (MindTap Course List)
A seven-year medical research study reported that women whose mothers took the drug DES during pregnancy were t...
STATISTICS F/BUSINESS+ECONOMICS-TEXT
Consider the following data on U.S. GDP: Year Nominal GDP in billions of dollars) GDP Deflator (base year 2009)...
Brief Principles of Macroeconomics (MindTap Course List)
Suppose that there are 10 million workers in Canada and that each of these workers can produce either 2 cars or...
Principles of Economics (MindTap Course List)
Identify and describe the three steps in the delegation process.
Foundations of Business (MindTap Course List)
An employee of the records office at a certain university currently has ten forms on his desk awaiting processi...
Probability and Statistics for Engineering and the Sciences
(Explicit and implicit Costs) Amos McCoy is currently raising corn on his 100-acre farm and earning an accounti...
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
The cost of producing flat-screen TVs has fallen over the past decade. Lets consider some implications of this ...
Principles of Macroeconomics (MindTap Course List)
Internal control of cash receipts The procedures used for over-the-counter receipts are as follows. At the clos...
Financial And Managerial Accounting
Who decides how and when data in an organization will be used or controlled? Who is responsible for seeing that...
Principles of Information Security (MindTap Course List)
Identify and briefly discuss three reasons for the steady growth in B2C e-commerce.
Principles of Information Systems (MindTap Course List)
What type of data is the National Security Agency collecting?
Fundamentals of Information Systems
Discuss the importance of data models.
Database Systems: Design, Implementation, & Management
Explain why the cost of ownership may be lower with a cloud database than with a traditional, company database.
Database Systems: Design, Implementation, & Management
Provide a brief summary of the various attempts by Congress to limit children’s exposure to online pornography,
Fundamentals of Information Systems
-18 through 7.4-25 An clement in plane stress is subjected to stresses sx,??y, and r. (see figure). Using Mohr’...
Mechanics of Materials (MindTap Course List)
Identify and briefly define six characteristics that describe the quality of data.
Principles of Information Systems (MindTap Course List)
Following are the results of a sieve analysis: a. Determine the percent finer than each sieve size and plot a g...
Fundamentals of Geotechnical Engineering (MindTap Course List)
Why must hydraulic line pressures increase when there is an increase of load on the engine?
Automotive Technology: A Systems Approach (MindTap Course List)
For Example 6.6 part (b), if the units of k, A, T1 T2, and L are given in Btu/hr ft F, ft2, F, and ft, respe...
Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)
Information such as tolerances and scale can be found in the________ of an engineering drawing.
Precision Machining Technology (MindTap Course List)
What are the dominant InfoSec-related credentials used to document knowledge and/or experience?
Management Of Information Security
Some systems analysts maintain that source document are unnecessary. They say that all input can entered direct...
Systems Analysis and Design (Shelly Cashman Series) (MindTap Course List)
The NEC requires that the disconnecting means for central heating equipment, other than fixed electric space he...
EBK ELECTRICAL WIRING RESIDENTIAL
Select the best answer for each of the following. The general purpose of motor control is a. to start the motor...
Electric Motor Control
The grain-size characteristics of a soil are given in the following table. a. Draw the grain-size distribution ...
Principles of Geotechnical Engineering (MindTap Course List)
Determine the resultant of the forces shown.
International Edition---engineering Mechanics: Statics, 4th Edition
A. An object is dropped from a height of 20 feet off the ground. What is its velocity when it hits the ground? ...
Fundamentals of Chemical Engineering Thermodynamics (MindTap Course List)
The haul distance is 15 miles as the crow flies, and the anticipated average truck speed is 35 mph. Estimate th...
Solid Waste Engineering
While discussing diagnostic procedures: Technician A says that after the visual inspection has been performed, ...
Automotive Technology
The details of an and hearing stiffener are shown in Figure P10.6-2.The stiffener plates are 9 16 -inch thick, ...
Steel Design (Activate Learning with these NEW titles from Engineering!)
A(n) _____ report consolidates data usually with totals, tables, or graphs. (558) a. detailed b. summary c. exc...
Enhanced Discovering Computers 2017 (Shelly Cashman Series) (MindTap Course List)
Why might organizations be willing to take on the risk of BYOD?
Network+ Guide to Networks (MindTap Course List)
