On September 1, 2020, Valdez Company reacquired 30,000 shares of its $10 par value common stock for $15 per share. Valdez uses the cost method to account for treasury stock. The journal entry to record the reacquisition of the stock should debit a. Common Stock for $300,000. b. Common Stock for $300,000 and Paid-in Capital in Excess of Par for $150,000. c. Treasury Stock for $450,000. d. Treasury Stock for $300,000
On September 1, 2020, Valdez Company reacquired 30,000 shares of its $10 par value common stock for $15 per share. Valdez uses the cost method to account for treasury stock. The journal entry to record the reacquisition of the stock should debit a. Common Stock for $300,000. b. Common Stock for $300,000 and Paid-in Capital in Excess of Par for $150,000. c. Treasury Stock for $450,000. d. Treasury Stock for $300,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 5MC
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On September 1, 2020, Valdez Company reacquired 30,000 shares of its $10 par value common stock for $15 per share. Valdez uses the cost method to account for
a. Common Stock for $300,000.
b. Common Stock for $300,000 and Paid-in Capital in Excess of Par for $150,000.
c. Treasury Stock for $450,000.
d. Treasury Stock for $300,000.
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