Required Information [The following information applies to the questions displayed below.] On January 1, 2019, Metco Inc. reported 273,000 shares of $2 par value common stock as being issued and outstanding. On March 24, 2019, Metco Inc. purchased for its treasury 3,900 shares of its common stock at a price of $36.00 per share. On August 19, 2019, 850 of these treasury shares were sold for $42.50 per share. Metco's directors declared cash dividends of $0.80 per share during the second quarter and again during the fourth quarter, payable on June 30, 2019. and December 31, 2019, respectively. A 2% stock dividend was issued at the end of the year. There were no other transactions affecting common stock during the year. -2. Prepare the journal entry for the treasury stock purchase on March 24, 2019. (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) View transaction list
Required Information [The following information applies to the questions displayed below.] On January 1, 2019, Metco Inc. reported 273,000 shares of $2 par value common stock as being issued and outstanding. On March 24, 2019, Metco Inc. purchased for its treasury 3,900 shares of its common stock at a price of $36.00 per share. On August 19, 2019, 850 of these treasury shares were sold for $42.50 per share. Metco's directors declared cash dividends of $0.80 per share during the second quarter and again during the fourth quarter, payable on June 30, 2019. and December 31, 2019, respectively. A 2% stock dividend was issued at the end of the year. There were no other transactions affecting common stock during the year. -2. Prepare the journal entry for the treasury stock purchase on March 24, 2019. (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) View transaction list
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required Information
[The following information applies to the questions displayed below.]
On January 1, 2019, Metco Inc. reported 273,000 shares of $2 par value common stock as being issued and outstanding.
On March 24, 2019, Metco Inc. purchased for its treasury 3.900 shares of its common stock at a price of $36.00 per share.
On August 19, 2019, 850 of these treasury shares were sold for $42.50 per share. Metco's directors declared cash
dividends of $0.80 per share during the second quarter and again during the fourth quarter, payable on June 30, 2019.
and December 31, 2019, respectively. A 2% stock dividend was issued at the end of the year. There were no other
transactions affecting common stock during the year.
a-2. Prepare the journal entry for the treasury stock purchase on March 24, 2019. (If no entry is required for a transaction/event,
select "No journal entry required" In the first account field.)
View transaction list
Journal entry worksheet
<
1
Record the purchase of 3,900 shares of treasury stock @ $36 per share.
Note: Enter debits before credits.
Event
1
Record entry
General Journal
Clear entry
Debit
Credit
View general journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6db4719a-9a82-4a68-9040-c81531e716f9%2Fdc37f742-2b97-42e0-83b3-22b0fd481fa2%2Fecmsf3_processed.png&w=3840&q=75)
Transcribed Image Text:Required Information
[The following information applies to the questions displayed below.]
On January 1, 2019, Metco Inc. reported 273,000 shares of $2 par value common stock as being issued and outstanding.
On March 24, 2019, Metco Inc. purchased for its treasury 3.900 shares of its common stock at a price of $36.00 per share.
On August 19, 2019, 850 of these treasury shares were sold for $42.50 per share. Metco's directors declared cash
dividends of $0.80 per share during the second quarter and again during the fourth quarter, payable on June 30, 2019.
and December 31, 2019, respectively. A 2% stock dividend was issued at the end of the year. There were no other
transactions affecting common stock during the year.
a-2. Prepare the journal entry for the treasury stock purchase on March 24, 2019. (If no entry is required for a transaction/event,
select "No journal entry required" In the first account field.)
View transaction list
Journal entry worksheet
<
1
Record the purchase of 3,900 shares of treasury stock @ $36 per share.
Note: Enter debits before credits.
Event
1
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
![Required Information
[The following information applies to the questions displayed below.]
On January 1, 2019, Metco Inc. reported 273,000 shares of $2 par value common stock as being issued and outstanding.
On March 24, 2019, Metco Inc. purchased for its treasury 3,900 shares of its common stock at a price of $36.00 per share.
On August 19, 2019, 850 of these treasury shares were sold for $42.50 per share. Metco's directors declared cash
dividends of $0.80 per share during the second quarter and again during the fourth quarter, payable on June 30, 2019.
and December 31, 2019, respectively. A 2% stock dividend was issued at the end of the year. There were no other
transactions affecting common stock during the year.
Required:
a-1. Use the horizontal model for the treasury stock purchase on March 24, 2019. Indicate the financial statement effect. (Enter
decreases with a minus sign to Indicate a negative financial statement effect.)
Assets
Balance Sheet
Liabilities
+
Stockholders' Equity
T
|—
–
Net Income
|=”
Income Statement
Revenues
|-|
|-|
Expenses](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6db4719a-9a82-4a68-9040-c81531e716f9%2Fdc37f742-2b97-42e0-83b3-22b0fd481fa2%2F5350d45_processed.png&w=3840&q=75)
Transcribed Image Text:Required Information
[The following information applies to the questions displayed below.]
On January 1, 2019, Metco Inc. reported 273,000 shares of $2 par value common stock as being issued and outstanding.
On March 24, 2019, Metco Inc. purchased for its treasury 3,900 shares of its common stock at a price of $36.00 per share.
On August 19, 2019, 850 of these treasury shares were sold for $42.50 per share. Metco's directors declared cash
dividends of $0.80 per share during the second quarter and again during the fourth quarter, payable on June 30, 2019.
and December 31, 2019, respectively. A 2% stock dividend was issued at the end of the year. There were no other
transactions affecting common stock during the year.
Required:
a-1. Use the horizontal model for the treasury stock purchase on March 24, 2019. Indicate the financial statement effect. (Enter
decreases with a minus sign to Indicate a negative financial statement effect.)
Assets
Balance Sheet
Liabilities
+
Stockholders' Equity
T
|—
–
Net Income
|=”
Income Statement
Revenues
|-|
|-|
Expenses
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