Elroy Corporation repurchased 2,500 shares of its own stock for $35 per share. The stock has a par of $420per share. A month later Elroy resold 625 shares of the treasury stock for $43 per share, Required What is the balance of the Treasury Stock account after these transactions are recognized? Balance of treasury stock
Elroy Corporation repurchased 2,500 shares of its own stock for $35 per share. The stock has a par of $420per share. A month later Elroy resold 625 shares of the treasury stock for $43 per share, Required What is the balance of the Treasury Stock account after these transactions are recognized? Balance of treasury stock
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Elroy Corporation repurchased 2,500 shares of its
own stock for $35 per share. The stock has a par of
$420per share. A month later Elroy resold 625
shares of the treasury stock for $43 per share,
Required
What is the balance of the Treasury Stock account
after these transactions are recognized?
Balance of treasury stock
Expert Solution

Step 1
Treasury shares are those shares which are being repurchased by the company from its own shareholders. This is shown as deduction from retained earnings.
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