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b. Reacquired 450 shares of common stock at $18 per share on August 1. Activity Financing Accounts Cash Decrease, Treasury Stock Increase Statement(s) Balance Sheet only How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, L.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Income Statement Stockholders Net Assets Liabilities Equity Revenues Expenses Income Cash No Entry Treasury Stock No Entry No Entry 2. Assume that the company resold the shares of treasury stock at $28 per share on October 1. The resale price of the treasury stock is $40,600, which when compared to its original cost, yielded excess of selling price over cost in the amount of s . This "excess" or "gain" is shown on the balance sheet as a(n) increase additional paid-in capital - treasury stock account.

b. Reacquired 450 shares of common stock at $18 per share on August 1. Activity Financing Accounts Cash Decrease, Treasury Stock Increase Statement(s) Balance Sheet only How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, L.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Income Statement Stockholders Net Assets Liabilities Equity Revenues Expenses Income Cash No Entry Treasury Stock No Entry No Entry 2. Assume that the company resold the shares of treasury stock at $28 per share on October 1. The resale price of the treasury stock is $40,600, which when compared to its original cost, yielded excess of selling price over cost in the amount of s . This "excess" or "gain" is shown on the balance sheet as a(n) increase additional paid-in capital - treasury stock account.

FINANCIAL ACCOUNTING
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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I need questions 1B and #2 answered, please. Thank you!

b. Reacquired 450 shares of common stock at $18 per share on August 1. Activity Financing Accounts Cash Decrease, Treasury Stock Increase Statement(s) Balance Sheet only How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Income Statement Stockholders' Net Assets Liabilities Equity Revenues Expenses Income Cash No Entry Treasury Stock No Entry No Entry 2. Assume that the company resold the shares of treasury stock at $28 per share on October 1. The resale price of the treasury stock is $40,600, which when compared to its original cost, yielded excess of selling price over cost in the amount of $ This "excess" or "gain" is shown on the balance sheet as a(n) increase in the additional paid-in capital - treasury stock account.
Transcribed Image Text:b. Reacquired 450 shares of common stock at $18 per share on August 1. Activity Financing Accounts Cash Decrease, Treasury Stock Increase Statement(s) Balance Sheet only How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Income Statement Stockholders' Net Assets Liabilities Equity Revenues Expenses Income Cash No Entry Treasury Stock No Entry No Entry 2. Assume that the company resold the shares of treasury stock at $28 per share on October 1. The resale price of the treasury stock is $40,600, which when compared to its original cost, yielded excess of selling price over cost in the amount of $ This "excess" or "gain" is shown on the balance sheet as a(n) increase in the additional paid-in capital - treasury stock account.
Treasury Stock The Stockholders' Equity section of Preston Enterprises' balance sheet on January 1, 2017, appeared as follows: Common stock, $10 par, 10,000 shares issued and outstanding $100,000 Additional paid-in capital 50,000 Retained earnings 80,000 Total stockholders' equity $230,000 Required: 1. Identify and analyze the effect of each transaction. The following transactions occurred during 2017: a. Reacquired 1,000 shares of common stock at $20 per share on July 1. Activity Financing Accounts Cash Decrease, Treasury Stock Increase Statement(s) Balance Sheet only How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with minus sign. Balance Sheet Income Statement Stockholders' Net Assets Liabilities Equity Revenues Expenses Income Cash -20,000 No Entry Treasury Stock -20,000 No Entry No Entry
Transcribed Image Text:Treasury Stock The Stockholders' Equity section of Preston Enterprises' balance sheet on January 1, 2017, appeared as follows: Common stock, $10 par, 10,000 shares issued and outstanding $100,000 Additional paid-in capital 50,000 Retained earnings 80,000 Total stockholders' equity $230,000 Required: 1. Identify and analyze the effect of each transaction. The following transactions occurred during 2017: a. Reacquired 1,000 shares of common stock at $20 per share on July 1. Activity Financing Accounts Cash Decrease, Treasury Stock Increase Statement(s) Balance Sheet only How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with minus sign. Balance Sheet Income Statement Stockholders' Net Assets Liabilities Equity Revenues Expenses Income Cash -20,000 No Entry Treasury Stock -20,000 No Entry No Entry
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