Purchase Solution

Treasury Stock

Not what you're looking for?

Ask Custom Question

Mosby Company's balance sheet shows:
Common stock, $20 par $3,000,000
Paid-in capital in excess of par 1,050,000
Retained earnings 750,000

Record the following transactions by the cost method.
a. Bought 5,000 shares of its common stock at $30 a share.
b. Sold 2,500 treasury shares at $31 a share.
c. Sold 1,000 shares of treasury stock at $27 a share.

Purchase this Solution

Solution Summary

The solution explains how to record some transactions involving treasury stock

Solution Preview

a. Bought 5,000 shares of its common stock at $30 a share.

The total cost is 5,000X30=150,000. The entry is
Treasury Stock Dr 150,000
Cash Cr 150,000

b. Sold 2,500 treasury shares at $31 a share.

Under the cost method, when treasury stock is sold, the credit to ...

Purchase this Solution


Free BrainMass Quizzes
IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Introduction to Finance

This quiz test introductory finance topics.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.