In 2022, Margaritaville's Products completed the treasury stock transactions described below.January 3:Issued 300,000 of its common shares for $8 per share and 3,000 preferred shares at $110.February 14:Issued 50,000 shares of common stock in exchange for equipment with a known cash price of $310,000.September 18:Sold 3 million treasury shares at $15 per share.Margaritaville had issued 50 million shares of its $1 par common stock for $18 several years ago.Required:Record the above transactions assuming that Margaritaville's Products uses the cost method.

Date Description Debit Credit January 3 Cash A/c $2,730,000 To Common Shares A/c…

Answered: In 2022, Margaritaville's Products…

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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In 2022, Margaritaville's Products completed the treasury stock transactions described below.

January 3:	Issued 300,000 of its common shares for $8 per share and 3,000 preferred shares at $110.
February 14:	Issued 50,000 shares of common stock in exchange for equipment with a known cash price of $310,000.
September 18:	Sold 3 million treasury shares at $15 per share.

Margaritaville had issued 50 million shares of its $1 par common stock for $18 several years ago.

Required:

Record the above transactions assuming that Margaritaville's Products uses the cost method.

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