IBM issues 200,000 shares of stock with a par value of $0.12 for $161 per share. Three years later, it repurchases these shares for $91 per share. IBM records the repurchase in which of the following ways? Multiple Choice Debit Treasury Stock for $18.20 million and credit Cash for $18.20 million. Debit Stockholders' Equity for $32.20 million, credit Additional Paid-in Capital for $18.20 million and credit Cash for $18.20 million. Debit Common Stock for $24,000, debit Additional Paid-in Capital for $18,176,000 and credit Cash for $18.20 million. Debit Common Stock for $24,000, debit Additional Paid-in Capital for $32,176,000 and credit Cash for $32.20 million.
IBM issues 200,000 shares of stock with a par value of $0.12 for $161 per share. Three years later, it repurchases these shares for $91 per share. IBM records the repurchase in which of the following ways? Multiple Choice Debit Treasury Stock for $18.20 million and credit Cash for $18.20 million. Debit Stockholders' Equity for $32.20 million, credit Additional Paid-in Capital for $18.20 million and credit Cash for $18.20 million. Debit Common Stock for $24,000, debit Additional Paid-in Capital for $18,176,000 and credit Cash for $18.20 million. Debit Common Stock for $24,000, debit Additional Paid-in Capital for $32,176,000 and credit Cash for $32.20 million.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:IBM issues 200,000 shares of stock with a par value of $0.12 for $161 per share. Three
years later, it repurchases these shares for $91 per share. IBM records the repurchase in
which of the following ways?
Multiple Choice
Debit Treasury Stock for $18.20 million and credit Cash for $18.20 million.
Debit Stockholders' Equity for $32.20 million, credit Additional Paid-in Capital for $18.20 million and
credit Cash for $18.20 million.
Debit Common Stock for $24,000, debit Additional Paid-in Capital for $18,176,000 and credit Cash for
$18.20 million.
Debit Common Stock for $24,000, debit Additional Paid-in Capital for $32,176,000 and credit Cash
for $32.20 million.
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