Advance Medical Imaging, Inc. reacquired 2,000 shares of its $5 par common stock at $15 a share. The stock originally sold for $10 a share. Required: a. Prepare the journal entry to record the reacquisition under the 1. cost method 2. par value method b. Prepare the journal entry to record the reissuance of 500 shares at $18 a share under the 1. cost method 2. par value method c. Prepare the journal entry to record the reissuance of 1,000 shares at $12 a share under the 1. cost method 2. par value method d. Prepare the journal entry to record the retirement of the remaining 500 shares under the 1. cost method 2. par value method

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.