20) On October 1, Gregory Corporation purchased 4,000 shares of Treasury Stock for $22 per share. On October 20, Gregory Corporation reissued 800 shares of its Treasury Stock at $25 per share. Which of the following statements about these transactions is accurate? A) Treasury Stock "cost" is $25 per share and Treasury Stock is credited $20,000 on Oct 20 B) Cash is debited $20,000 on Oct 20 and Treasury Stock "cost" is $22 per share C) Treasury Stock is debited $88,000 on Oct 1 and Cash is credited $20,000 on Oct 20 D) Cash is debited $20,000 on Oct 20 and Treasury Stock "cost" is $25 per share

20) On October 1, Gregory Corporation purchased 4,000 shares of Treasury Stock for $22 per share. On October 20, Gregory Corporation reissued 800 shares of its Treasury Stock at $25 per share. Which of the following statements about these transactions is accurate? A) Treasury Stock "cost" is $25 per share and Treasury Stock is credited $20,000 on Oct 20 B) Cash is debited $20,000 on Oct 20 and Treasury Stock "cost" is $22 per share C) Treasury Stock is debited $88,000 on Oct 1 and Cash is credited $20,000 on Oct 20 D) Cash is debited $20,000 on Oct 20 and Treasury Stock "cost" is $25 per share

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The Snow Corporation issues 9,800 shares of $52 par value preferred stock for cash at $66 per share. The entry to record the transaction will consist of a debit to Cash for $646,800. What credit or credits will the entry consist of? Select the correct answer. -Preferred Stock for $509,600 and Retained Earnings for $137,200. -Paid-in Capital from Preferred Stock for $646,800. -Preferred Stock for $646,800. -Preferred stock for $509,600 and Paid-in Capital in Excess of Par Value - Preferred Stock for $137,200.
On April 2 a corporation purchased for cash 6,000 shares of its own $12 par common stock at $27 a share. It sold 4,000 of the treasury shares at $30 a share on June 10. The remaining 2,000 shares were sold on November 10 for $23 a share. a. Journalize the entries to record the purchase (treasury stock is recorded at cost). If an amount box does not require an entry, leave it blank Apr. 2 Treasury Stock Treasury Stock Cash Cash Question Content Area b. Journalize the entries to record the sale of the stock. If an amount box does not require an entry, leave it blank. Jun. 10 - Select - - Select - - Select - - Select - - Select - - Select - Nov. 10 - Select - - Select - - Select - - Select - - Select - - Select -
Entity H issued 9,000 shares of its $1 par value common stock for $20 per share. Which of the following statements is correct? Hint: Make the journal entry first. Common stock should be credited for $180,000. Cash should be credited for $180,000. Paid-in-capital-in-excess-of-par-value should be debited for $171,000. Common stock should be credited for $9,000.
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D Company had the following transactions pertaining to stock investments. Feb. 1 Purchased 600 shares of G common stock (4%) for $6,000 cash, plus brokerage fees of $400. July 1 Received cash dividends of $2 per share on Goetz common stock. Sept. 1 Sold 300 shares of G common stock for $4,600, less brokerage fees of $100. Dec. 1 Received cash dividends of $1 per share on G common stock. Instructions: Journalize the transactions.
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