ON JANUARY 1, VERMONT CORPORATION HAD 39,600 SHARES OF $10 PAR VALUE COMMON STOCK ISSUED AND OUTSTANDING. ALL 39,600 SHARES HAD BEEN ISSUED IN A PRIOR PERIOD AT $21 PER SHARE. ON FEBRUARY 1, VERMONT PURCHASED 1,020 SHARES OF TREASURY STOCK FOR $28 PER SHARE AND LATER SOLD THE TREASURY SHARES FOR $19 PER SHARE ON MARCH 1. THE JOURNAL ENTRY TO RECORD THE PURCHASE OF THE TREASURY SHARES ON FEBRUARY 1 WOULD INCLUDE A: A. CREDIT TO A GAIN ACCOUNT FOR $7,140 B. CREDIT TO TREASURY STOCK FOR $28,560 C. DEBIT TO TREASURY STOCK FOR $28,560 D. DEBIT TO A LOSS ACCOUNT FOR $7,140 NEED ENTRY IN TABLE FORMAT WHICH STATEMENT BELOW REGARDING A SHARE REPURCHASE IS TRUE? A. THE COMPANY REPURCHASING SHARES IS NOT ENTITLED TO VOTE. B. REPURCHASING SHARES SHRINK A COMPANY'S ASSETS AND EQUITY. C. A SHARE REPURCHASE GROWS A COMPANY'S ASSETS AND EQUITY. D. REPURCHASING SHARES INCREASES RETAINED EARNINGS.
ON JANUARY 1, VERMONT CORPORATION HAD 39,600 SHARES OF $10 PAR VALUE COMMON STOCK ISSUED AND OUTSTANDING. ALL 39,600 SHARES HAD BEEN ISSUED IN A PRIOR PERIOD AT $21 PER SHARE. ON FEBRUARY 1, VERMONT PURCHASED 1,020 SHARES OF TREASURY STOCK FOR $28 PER SHARE AND LATER SOLD THE TREASURY SHARES FOR $19 PER SHARE ON MARCH 1. THE JOURNAL ENTRY TO RECORD THE PURCHASE OF THE TREASURY SHARES ON FEBRUARY 1 WOULD INCLUDE A: A. CREDIT TO A GAIN ACCOUNT FOR $7,140 B. CREDIT TO TREASURY STOCK FOR $28,560 C. DEBIT TO TREASURY STOCK FOR $28,560 D. DEBIT TO A LOSS ACCOUNT FOR $7,140 NEED ENTRY IN TABLE FORMAT WHICH STATEMENT BELOW REGARDING A SHARE REPURCHASE IS TRUE? A. THE COMPANY REPURCHASING SHARES IS NOT ENTITLED TO VOTE. B. REPURCHASING SHARES SHRINK A COMPANY'S ASSETS AND EQUITY. C. A SHARE REPURCHASE GROWS A COMPANY'S ASSETS AND EQUITY. D. REPURCHASING SHARES INCREASES RETAINED EARNINGS.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:ON JANUARY 1, VERMONT CORPORATION HAD 39,600 SHARES OF $10
PAR VALUE COMMON STOCK ISSUED AND OUTSTANDING. ALL 39,600
SHARES HAD BEEN ISSUED IN A PRIOR PERIOD AT $21 PER SHARE. ON
FEBRUARY 1, VERMONT PURCHASED 1,020 SHARES OF TREASURY
STOCK FOR $28 PER SHARE AND LATER SOLD THE TREASURY SHARES
FOR $19 PER SHARE ON MARCH 1. THE JOURNAL ENTRY TO RECORD
THE PURCHASE OF THE TREASURY SHARES ON FEBRUARY 1 WOULD
INCLUDE A: A. CREDIT TO A GAIN ACCOUNT FOR $7,140 B. CREDIT TO
TREASURY STOCK FOR $28,560 C. DEBIT TO TREASURY STOCK FOR
$28,560 D. DEBIT TO A LOSS ACCOUNT FOR $7,140 NEED ENTRY IN
TABLE FORMAT WHICH STATEMENT BELOW REGARDING A SHARE
REPURCHASE IS TRUE? A. THE COMPANY REPURCHASING SHARES IS
NOT ENTITLED TO VOTE. B. REPURCHASING SHARES SHRINK A
COMPANY'S ASSETS AND EQUITY. C. A SHARE REPURCHASE GROWS A
COMPANY'S ASSETS AND EQUITY. D. REPURCHASING SHARES
INCREASES RETAINED EARNINGS.
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