QFAQ34- DerecognitionHomework Unanswered Due Today, 6:00 PMJanuary 1, 2012 - Company issues $10,000,000 of no par common shares at $10 each.DR. Cash $10,000,000CR. Common shares $10,000,000January 1, 2018 - Company reacquires 100,000 common shares in the open market at $8 each and cancels them immediately. There were noother capital transactions and the company had not paid any dividends.How would the journal entries change if the Company reacquires 100,000 common shares in the open market at $11 each and cancels themimmediately?Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.aInstead of CR. Contributed surplus, we would DR. Contributed surplus.bInstead of CR. Contributed surplus, we would DR. Retained earnings.сInstead of CR. Cash, we would DR. Common shares.dInstead of DR. Common shares, we should CR. Preferred SharesNone of the other options.Submit%5TGeUnansweredIF5A6YHMacBook Air4F6F7&7UJ* 008DIIF8|K(9DDF9O)OLF10P| 1(1F1113{+ 11=F12

Treasury stock is the stock that has been reacquired by the company from the existing stockholders.…

Answered: January 1, 2012-Company issues…

January 1, 2012-Company issues $10,000,000 of no par common shares at $10 each. DR. Cash $10,000,000 CR. Common shares $10,000,000

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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Concept explainers

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.

Question

Q
FA
Q34- Derecognition
Homework Unanswered Due Today, 6:00 PM
January 1, 2012 - Company issues $10,000,000 of no par common shares at $10 each.
DR. Cash $10,000,000
CR. Common shares $10,000,000
January 1, 2018 - Company reacquires 100,000 common shares in the open market at $8 each and cancels them immediately. There were no
other capital transactions and the company had not paid any dividends.
How would the journal entries change if the Company reacquires 100,000 common shares in the open market at $11 each and cancels them
immediately?
Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.
a
Instead of CR. Contributed surplus, we would DR. Contributed surplus.
b
Instead of CR. Contributed surplus, we would DR. Retained earnings.
с
Instead of CR. Cash, we would DR. Common shares.
d
Instead of DR. Common shares, we should CR. Preferred Shares
None of the other options.
Submit
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