Grunted law offices paid 59,000 to buy back 14,000 shares of its $1 par value common stock. The stock was sold later at a selling price of $15 per share. The journal entry to record the sale would include a DO NOT ROUND INTERMEDIATE CALCULATIONS -debit to common stock 59,000 Credits to paid in capital from treasury stock transaction 151,000 Credit to common stock 151,000 Credit to paid in capital from treasury stock transactions 59,000

Q: A company bought back 57,000 shares of its own common stock at $14 per share. Four months later the…

A: Given Information: Company bought back 57,000 shares at price $14 After 4 month 20,000 shares were…

Q: Treasury stock that had been purchased for $4,760 last month was reissued this month for $5,640. The…

A: Treasury stock: The shares which were reacquired or bought back by the company, but not formally…

Q: Foster Corporation issued 48,000 shares of $2 par value common stock in exchange for a building with…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: Summit Apparel has the following accounts at December 31: Common Stock. $1 par value, 1.700,000…

A: Let's Understand some basics Stockholder's Equity is shown on the liability side of the Balance…

Q: Tropical Rainwear issues 2,000 shares of its $15 par value preferred stock for cash at $17 per…

A: Number of shares issued = 2,000 Par value of the stock = $15 Issue price of the stock = $17

Q: Blue Spruce Inc.'s $10 par value common stock is actively traded at a market price of $16 per share.…

A: Common stock is a type of tradeable assets, or security, that equates to ownership in  company.Per…

Q: Pina Colada Corporation issued 1,900 shares of stock. Prepare the entry for the issuance under the…

A: The common shares refer to the shares issued to investors and business owners and the share is proof…

Q: If Dakota Company issues 1,100 shares of $6 par common stock for $24,200, a.Cash will be debited…

A: Common stock: These are the shares issued by a company to an outsider. These shares entitle a share…

Q: Monty Inc. issues 4,550 shares of $100 par value preferred stock for cash at $140 per share.…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Q: On May 1, Splish Brothers Corporation purchased 3.200 shares of its $10 par value common stock at a…

A: Treasury stock: Shares that are bought back by the company from the open market but not retired from…

Q: On July 1, Novak Corporation purchases 570 shares of its $5 par value common stock for the treasury…

A: The question is based on the concept of Financial Accounting. When the company buyback its own…

Q: On July 1, Sage Hill Inc. purchases 600 shares of its $5 par value common stock for the treasury at…

A: Total cash paid = No. of shares purchases x Price per share = 600*$8 = $4,800

Q: Oriole Corporation has 74.000 shares of common stock outstanding It declares a $2 per share cash…

A: The journal entries are prepared to keep the record of day to day transactions of the business.  The…

Q: Dexter Corporation purchased from its stockholders 4,000 shares of its own previously issued stock…

A: >Treasury stock are the shares that have been purchased by the original issuing company from its…

Q: 7. Treasury stock that had been purchased for $5.600 last month was reissued this month for $8,500.…

A: When treasury stock is reissued, the accounting treatment depends on the relationship between the…

Q: On 2/1, Curly's Hair Supply purchased 11,000 shares of treasury stock at $4 per share. On 11/1,…

A: Treasury stock is stock repurchased by the issuer and intended for retirement or resale to the…

Q: On May 10, Whispering Winds Corporation issues 2,950 shares of $10 par value common stock for cash…

A: Face value of the share is the stock value given to the shares and printed in the share certificate.…

Q: The original sale of the $50 par value common shares of Blue Company was recorded as follows: Cash…

A: The treasury stock transactions under the cost method are shown below:

Q: Elk Co. issues 1,000 shares of $5 par common stock for $30,000. The firm used Pilot’s Underwriting…

A: The shares can be issued for cash or non cash assets. The excess amount received for shares issued…

Q: Treasury stock that had been purchased for $4,550 last month was reissued this month for $5,042.…

A: Formulas: Excess of cost = Reissue price - Purchase price Excess of cost = $5,042 - $4,550 Excess of…

Q: Larkspur, Inc. has 6,700 shares of common stock outstanding. It declares a $2 per share cash…

A: Dividend declared and paid: The majority of dividends are cash dividends, which are distributions…

Q: Ogilvie Corp. issued 30,000 shares of no-par stock for $40 per share. Ogilvie was authorized to…

A: Entry for stock issued: Cash a/c Dr $1,200,00      To Paid in excess capital a/c $1,200,000

Q: On May 10, Cheyenne Corp. issues 1,400 shares of $5 par value common stock for cash at $15 per…

A: Accounting equation is a mathematical equation that shows relationship between assets, liabilities…

Q: On July 1, Blue Spruce Corporation purchases 460 shares of its $5 par value common stock for the…

A: Treasury shares means the share which has been buy back by the company . It will be shown as…

Q: Treasury stock that had been purchased for $4,166 last month was reissued this month for $5,455. The…

A: Treasury stock: Treaseury stock are the shares which are bought back by the company from the open…

Q: Badger Corporation issued 5,000 shares of its $5 par value common stock in payment for attorney…

A: The journal entries are prepared to record the transactions on regular basis. The shares issued at…

Q: Pro-Builders Corporation has 242,000 shares of $30 par common stock outstanding. On September 2,…

A: INTRODUCTION Dividend is distribution of company’s profit and it is paid in the form of cash or…

Q: Prepare the journal entry to record Autumn Company's issuance of 63,000 shares of no-par value…

A: Issue of Shares: In business, the issuance of shares refers to the process through which companies…

Q: Larkspur Inc. issues 7,600 shares of $100 par value preferred stock for cash at $104 per share.…

A: Preferred stock is a type of equity which indicates ownership in organization. In order to raise…

Q: During its first year of operations, Crane Corporation had these transactions pertaining to its…

A: ACCOUNTING EQUATIONAccounting Equation is a Financial Accounting Technique which represents the…

Q: On October 31, Legacy Rocks Ic., a marble contractor, issued for cash 74,600 shares of $10 par…

A: a.

Q: On July 1, Bridgeport Corporation purchases 680 shares of its $5 par value common stock for the…

A: Journal entries are the primary reporting of the business transactions in the books of accounts.…

Q: On May 1, Whispering Winds Corporation purchased 2.600 shares of its $10 par value common stock at a…

A: Treasury stock: Shares that are bought back by the company from the open market but not retired from…

Q: Farmers Incorporated issued 6,000 shares of its $10 par value common stock in exchange for land that…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Q: Quickbux Co. issued and sold 1,000 shares of common stock, with a par value of $5, for $12 per…

A: Shareholders' equity includes common stock, preferred stock, paid-in capital in excess of par, and…

Q: If Dakota Company issues 3,200 shares of $10 par common stock for $57,600, Oa. Cash will be debited…

A: Issue of shares Issue of Shares is the process by which companies pass on new shares to…

Q: Astro Corporation was started with the issue of 4,500 shares of $10 par stock for cash on January 1,…

A: Common Stock : 4500 shares x $10 per stock = $45,000 Additional Paid in Capital : 4500 shares x $7…

Q: Lily Corporation issued 5,400 shares of stock. Prepare the entry for the issuance under the…

A: S.No.      Particulars.           Debit($)     Credit($) A).           Cash.…

Q: Closet Organizers Inc. sells closet organizing systems. Selected accounts and their balances as of…

A: Stockholder's Equity -Stockholder's Equity includes the amount contributed by shareholders issued in…

Q: Treasury stock that had been purchased for $3,538 last month was reissued this month for $5,151. The…

A: Treasury stock are the shares which are bought back by the company from the open market, but not…

Q: Tamarisk, Inc. issues 9,400 shares of $106 par value preferred stock for cash at $110 per share.…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: [The following information applies to the questions displayed below.] Tarrant Corporation was…

A: Par value of the common stock is the face value which is stated in the authorized charter . When…

Q: Surfer Girl Clothing Company issues 1,000 shares of $1 par value common stock at $25 per share.…

A: When a company purchases its own stock, it is referred to as treasury stock. This repurchase can…

Q: A corporation sold 9,500 shares of its $10 par value common stock at a cash price of $11 per share.…

A: >Issuance of common stock is one of the Financing activity from which the corporation gets Cash…

Q: Prepare the entries on the appropriate dates to record the declaration and payment of the cash…

A: As soon as Dividend is declared the company has to record the liability and on Payment the liability…

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.