alem's Company issued 100,000 shares of $1 par value ordinary shares at a price of $10 per share. In addition, it has retained earnings of $300,000. On January 20, 2020, Salem acquires 10,000 of its shares at $11 per share. The journal entry to record the reacquisition is: a. Cash 100,000 Ordinary Shares 100,000 b. Cash 10,000 Ordinary Shares 10,000 c. Treasury Shares 110,000 Cash 110,000 d. Treasury Shares 11,000,000 Cash 11,000,000

alem's Company issued 100,000 shares of $1 par value ordinary shares at a price of $10 per share. In addition, it has retained earnings of $300,000. On January 20, 2020, Salem acquires 10,000 of its shares at $11 per share. The journal entry to record the reacquisition is: a. Cash 100,000 Ordinary Shares 100,000 b. Cash 10,000 Ordinary Shares 10,000 c. Treasury Shares 110,000 Cash 110,000 d. Treasury Shares 11,000,000 Cash 11,000,000

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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Question

Salem's Company issued 100,000 shares of $1 par value ordinary shares at a price of $10 per share. In addition, it has retained earnings of $300,000.

On January 20, 2020, Salem acquires 10,000 of its shares at $11 per share. The journal entry to record the reacquisition is:

Cash 100,000

Ordinary Shares 100,000

Cash 10,000

Ordinary Shares 10,000

Treasury Shares 110,000

Cash 110,000

Treasury Shares 11,000,000

Cash 11,000,000

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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