Purchase Solution

Treasury stock : Journal entries

Not what you're looking for?

Ask Custom Question

Treasury Stock
The stockholders' equity section of Carol Aityassine's (CA) balance sheet at December 31, 2003, was as follows:

Common stock--$10 par (authorized 1,000,000 shares,
issued and outstanding 600,000 shares) $ 6,000,000
Paid-in capital in excess of par 1,500,000
Retained earnings 3,250,000
$10,750,000

Instructions
Prepare journal entries to reflect the following treasury stock transactions showing how each is accounted for under the cost method. (Show computations.)

10. On January 4, 2004, having idle cash, CA Co. repurchased 25,000 shares of its out-standing stock for $450,000.

11. On March 4, CA sold 5,000 of these reacquired shares at $22 per share.

12. Show the proper disclosures in the stockholders' equity section of the balance sheet issued at the end of the first quarter, March 31, 2004. Assume net income of $100,000 during the first quarter.

Purchase this Solution

Solution Summary

Solution contains journal entries.

Purchase this Solution


Free BrainMass Quizzes
IPOs

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

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.