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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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I need questions 1B and #2 answered, please. Thank you!

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.

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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