Mad City Corporation purchased from its stockholders 5,000 shares of its own previously issued stock for $250,000. It later resold 2,000 shares for $54 per share, then 2,000 more shares for $49 per share, and finally 1,000 shares for $40 per share. Instructions: Prepare journal entries for the purchase of the treasury stock and the three sales of treasury stock.

Q: provide detailed solution..

A: The corporation purchased 6,000 shares of its own stock at $27 per share. To calculate the total…

Q: Empresas La Sierra presents the following information: • On January 5, the company issues 25,000…

A: Journal: It refers to an account which shows all the financial transactions pertaining to a…

Q: California Surf Clothing Company issues 1,000 shares of $1 par value common stock at $27 per share.…

A: Treasury stock: Shares which are bought back by the company from the open market are Treasury stock.…

Q: On May 3, Zirbal Corporation purchased 7,000 shares of its own stock for $49,000 cash. On November…

A: recording of journal entry of above transaction are as follows

Q: Elroy Corporation repurchased 3,400 shares of its own stock for $40 per share. The stock has a par…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Incentive Corporation was authorized to issue 12,000 shares of common stock, each with a $1…

A:

Q: Splish Brothers Inc. purchased from its stockholders 6,000 shares of its own previously issued stock…

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

Q: On July 1, Hanson Corporation issued 10 shares of $100 par value preferred stock for cash of $1,000…

A: Given, Par value = $100 Issue price = $1,000 Number of shares issued = 10

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: 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: Prepare the journal entries to record the following transactions, in the books of Holman Dress…

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

Q: Centex, Inc. issued 47,000 shares of its $1 par value common stock for $30 per share. The journal…

A: The company can raise funds by various methods. Some of them are, by way of issuing common stock,…

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: e entries

A: a. Date Account titles and explanation Debit Credit Apr. 2 Treasury stock(7000 * $26) $182,000…

Q: Sheridan Corporation purchased from its stockholders 5,900 shares of its own previously issued stock…

A: When the shares are bought back from the existing shareholders they are referred to as treasury…

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: Prepare journal entries to record the following selected transactions. January 10 Issued 121,000…

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

Q: A corporation issues 5,000 shares of common stock for $62,000. The stock has a stated value of $10…

A: Issuing common stock at more than par means selling shares at a price higher than their stated or…

Q: On July 1, Marin Inc. purchases 510 shares of its $5 par value common stock for the treasury at a…

A: Solution:- Preparation of journal entry as follows under:-

Q: Sunshine Clothing Company issues 1,000 shares of $1 par value common stock at $33 per share. Later…

A: Stock repurchase, also known as buying back shares or repurchasing treasury stock, is when a company…

Q: Nash Group, Inc. issued 1,000 shares of $10 par common stock in Year 1 for $20 per share. Nash paid…

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

Q: Elroy Corporation repurchased 2,500 shares of its own stock for $30 per share. The stock has a par…

A: STATEMENT OF SHAREHOLDERS EQUITYStatement of Shareholders Equity is also Known as Changes in…

Q: During Year 1, Long Beach Corporation completed the treasury stock transactions described below:…

A: Treasury stock refers to that stock which has been repurchased by a company. Note that this stock…

Q: On January 1, Sweeney Corporation had 40,000 shares of $10 par value common stock issued and…

A: We have the following information: On January 1, Sweeney Corporation had 40,000 shares of $10 par…

Q: On May 3, Zirbal Corporation purchased 5,500 shares of its own stock for $49,500 cash. On November…

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

Q: Kettle Inc. was organized on January 2, Year 1, with 6,000,000 authorized and outstanding shares of…

A: The treasury stock includes the own shares of the company. The treasury stock has the debit balance.…

Q: Assume that on February 12, First Union Co. purchases for cash 6,000 shares of Gilbert Co. stock at…

A: Total amount paid = (No. of shares x Price per share) + Brokerage fee = (6,000 shares  x $22 per…

Q: On May 3, Zirbal Corporation purchased 4,500 shares of its own stock for $31,500 cash. On November…

A: Buy back of share means buying our own share from the open marked, these share are technically…

Q: California Surf Clothing Company issues 1,000 shares of $1 par value common stock at $16 per share.…

A: The journal entries are prepared to record the transactions on regular basis. The treasury stock…

Q: Foley Co. bought 50 shares of its stock for $8 per share to be held as Treasury Stock. Record this…

A: The treasury stock are the purchase of its own shares from the market.

Q: On March 5, Jerald Corporation purchased 7,000 shares of its own common stock for $56,000. On July…

A: An audit trail that may be examined during internal or external audits is created when treasury…

Q: On July 1, Flint Corporation purchases 510 shares of its $5 par value common stock for the treasury…

A: The stock which is repurchased by the organization from its shareholders which was issued previously…

Q: On May 3, Zirbal Corporation purchased 6,000 shares of its own stock for $66,000 cash. On November…

A: Treasury stock refers to shares of a company's own stock that it has repurchased from the open…

Q: Gotham Inc. issued 10,000 shares of its $2 par value common stock for $25 per share. The journal…

A: Cash (10,000 x $25) 250,000     Common Stock (10,000 x $2)   20,000   Additional Paid-in Capital…

Q: Liberward, Inc., sold and issued 1,000 shares for $15 per share. The book value of the shares was…

A: Shares are a mean of raising capital from the shareholders. Shares can be ordinary shares or…

Q: n January 1, Vermont Corporation had 41,000 shares of $12 par value common stock issued and…

A: Journal entry: This is the first step to record accounts. It is written in the same order in which…

Q: On April 2 a corporation purchased for cash 7,000 shares of its own $10 par common stock at $28 per…

A: Apr, 2 Treasury Stock $196,000               Cash   $196,000

Q: Prepare the appropriate general journal entries for the following treasury stock transactions of…

A: Treasury stock refers to a method used by the organization to repurchase the issued stock. It is…

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: On April 2 a corporation purchased for cash 6,000 shares of its own $13 par common stock at $27 a…

A: Treasury stock are the shares bought back by the company and are shown as deduction from the…

Q: Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 shares of $5 preferred stock,…

A: Journal is the book where transactions are originally recorded. Further, a journal entry is used to…

Q: On July 1, Pina Colada Corp. purchases 610 shares of its $5 par value common stock for the treasury…

A:

Q: On April 2 a corporation purchased for cash 7,000 shares of its own $12 par common stock at $27 per…

A: Treasury stocks are repurchased shares of the company. The firm has the power to reissue these…

Q: A corporation purchases 1,000 shares of its own common stock for $4,000 on February 13. On April 13,…

A: Treasury stocks are the stocks which the company buys back from the already issued  stocks  from the…

Q: The Estrella Corporation purchased 5,000 outstanding shares (which had previously been issued)…

A: 1. Treasury Stock - Treasury Stock is the shares repurchased by the company from the market. It is…

Q: On April 2 a corporation purchased for cash 6,000 shares of its own $12 par common stock at $27 a…

A: Treasury stocks are repurchased shares of the company. The firm can reissue these stocks at a…

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.