In 2012, Dave Inc. issued 300,000 of its 500,000 authorized shares of $10 par value common stock at $35 per share. In January 2013, Dave Inc., repurchased 30,000 shares at $30 per share. Assume these are the only stock transactions the company has ever had. Required: A. Prepare the journal entry to record the purchase of treasury stock by the cost method. B. 11,000 shares of treasury stock are reissued at $33 per share. Prepare the journal entry to record the reissuance using the cost method.

In 2012, Dave Inc. issued 300,000 of its 500,000 authorized shares of $10 par value common stock at $35 per share. In January 2013, Dave Inc., repurchased 30,000 shares at $30 per share. Assume these are the only stock transactions the company has ever had. Required: A. Prepare the journal entry to record the purchase of treasury stock by the cost method. B. 11,000 shares of treasury stock are reissued at $33 per share. Prepare the journal entry to record the reissuance using the cost method.

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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