Accounting for Treasury StockBig Ben Corporation provides travel planning services for large corporations across the world. On January 23, Big Ben Corporation repurchases $235,000 shares of its outstanding common stock for $18 per share. On May 19, Big Ben sells 111,500 shares of treasurystock for $10 per share. On November 1, Big Ben sells 75,000 shares of its treasury stock for $25 per share.Required:1. Prepare the necessary journal entries to record these transactions. If an amount box does not require an entry, leave it blank.Jan. 23May 19Nov. 1▼2. Conceptual Connection: How will these transactions affect Big Ben's income statement?The income statement isby treasury stock transactions because the income statement

When the company repurchases its own shares, the cost is deducted from the equity section of the…

Answered: Accounting for Treasury Stock Big Ben…

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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Instructions On January 31, Wilderness Resorts Inc. reacquired 23,900 shares of its common stock at $31 per share. On April 20, Wilderness Resorts sold 14,000 of the reacquired shares at $40 per share. On October 4, Wilderness Resorts sold the remaining shares at $29 per share. Journalize the transactions of January 31, April 20, and October 4. Refer to the Chart of Accounts for exact wording of account titles. Journal JOURNAL DESCRIPTION POST. REF. DEBIT CREDIT 1 2 B DATE AS
Nutritious Pet Food Company’s board of directors declares a cash dividend of $1.00 per common share on November 12. On this date, the company has issued 11,000 shares but 2,200 shares are held as treasury shares. What is the journal entry to record the declaration of this dividend? If an amount box does not require an entry, leave it blank. Nov. 12
Nutritious Pet Food Company's board of directors declares a cash dividend of $1.00 per common share on November 12. On this date, the company has issued 8,000 shares but 1,900 shares are held as treasury shares. What is the journal entry to record the declaration of this dividend? If an amount box does not require an entry, leave it blank. Nov. 12
Tropical Rainwear issues 2,000 shares of its $16 par value preferred stock for cash at $18 per share. Record the issuance of the preferred shares. (If no entry is required for a particular transaction/event, select "No Jour Required" in the first account field.) View transaction list Journal entry worksheet 1 Record the issuance of the preferred, shares. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal
Treasury stock transactions Mystic Lake Inc. bottles and distributes spring water.On July 9 of the current year, Mystic Lake reacquired 60,000 shares of its common stock at $42 per share. On September 22, Mystic Lake sold 45,000 of the reacquired shares at $51per share.The remaining 15,000 shares were sold at $40 per share on November 23. a.Journalize the transactions of July September 22, and November 23. b.What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31of the current year? c.For what reasons might Mystic Lake have purchased the treasury stock?
A corporation purchased for cash 5,000 shares of its own $10 par common stock at $25 a share. In the following year, it sold 2,000 of the treasury shares at $28 a share for cash. (a) Journalize the entries to record the purchase (treasury stock is recorded at cost). (b) Journalize the entries to record the sale of the stock. (for each Journal Entry, omit the step of providing a brief explanation) JOURNAL Date Post. DR CR (a) (b)
Fact Pattern: Jensen Corporation’s board of directors met on June 3 and declared a regular quarterly cash dividend of $.40 per share for a total value of $200,000. The dividend is payable on June 24 to all stockholders of record as of June 17. Excerpts from the statement of financial position for Jensen Corporation as of May 31 are presented as follows. Cash $ 400,000 Accounts receivable (net) 800,000 Inventories 1,200,000 Total current assets $2,400,000 Total current liabilities $1,000,000 Assume that the only transactions to affect Jensen Corporation during June are the dividend transactions. Question Jensen’s quick (acid test) ratio would be A.Decreased by the dividend declaration and increased by the dividend payment. B.Unchanged by the dividend declaration and decreased by the dividend payment. C.Unchanged by either the dividend declaration or the dividend payment. D.Decreased by the…
Sunshine Clothing Company issues 1,000 shares of $1 par value common stock at $33 per share. Later in the year, the company decides to purchase 100 shares at a cost of $36 per share. Determine the financial statement effects of the purchase of treasury stock. (Amounts to be deducted should be entered with minus sign.) Revenues Assets Income Statement Expenses Balance Sheet Liabilities Net Income Stockholders' Equity
Entries for Stock Investments, Dividends, and Sale of Stock Seamus Industries Inc. buys and sells investments as part of its ongoing cash management. The following investment transactions were completed during the year: Feb. 24 Acquired 2,000 shares of Tett Co. stock for $80 per share plus a $200 brokerage commission. May 16 Acquired 2,000 shares of Issacson Co. stock for $40 per share plus a $100 commission. July 14 Sold 500 shares of Tett Co. stock for $100 per share less a $50 brokerage commission. Aug. 12 Sold 1,000 shares of Issacson Co. stock for $34 per share less an $80 brokerage commission. Oct. 31 Received dividends of $0.30 per share on Tett Co. stock. Journalize the entries for these transactions under the fair value method. If an amount box does not require an entry, leave it blank. Feb. 24 Investments-Tett Co. Stock fill in the blank 2 fill in the blank 3 Cash fill in the blank 5 fill in the blank 6 May 16 Investments-Issacson Co. Stock fill…
Entries for Selected Corporate Transactions Bacalso Enterprises, Inc. manufactures bathroom fixtures. The shareholders' equity accounts with balances as of Jan. 1, 2018 are as follows: Ordinary Shares, P25 stated value, 100,000 shares authorized, 50,000 shares issued P1,250,000 250,000 150,000 80,000 725,000 80,000 Share Premium Appropriation for Plant Expansion Appropriation for Treasury Stock Retained Earnings Treasury Stock, 2,500 shares, at cost The following selected transactions occurred during the year: Received donated land with a fair market value of P100,000, Paid cash dividends of P1 per share on the ordinary shares. The dividend had been properly recorded when declared on Dec. 30 of the preceding fiscal year for P47,500. Sold all of the treasury stock for P95,000. Issued 6,000 ordinary shares for P240,000. Declared a 2% share dividend on ordinary shares, to be capitalized at the market price of the stock, which is P40 a share. Issued the certificates for the dividend…
4: The board of directors of Energy Manufacturing is in the process of declaring a cash dividend of $2 per share. Energy Mfg. is authorized to issue 200,000 shares of common stock. The company has issued 125,000 shares to date, and has reacquired 15,000 shares, which are held in treasury. a. How many shares of common stock are eligible to receive a dividend? b. Assume that the board declares the dividend. Prepare the appropriate journal entries on the (1) date of declaration, (2) date of record, and (3) date of payment.
On July 1, Goetz Corporation purchases 500 shares of its $5 par value common stock for the treasury at a cash price of $8 per share. On September 1, it sells 300 shares of the treasury stock for cash at $11 per share. Journalize the two treasury stock transactions.

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