Rock Bottom Gold Company recently repurchased 7.09 million shares of its common stock for $56 per share. The intentof the repurchase was to increase earnings per share to be more in line with competitors.Required:1. Determine the impact of the stock repurchase on assets, liabilities, and stockholders' equity. (Enter your answers inwhole dollars not in millions (i.e., 1,000,000 not 1.0). Negative amounts should be indicated by a minus sign. )AssetsLiabilitiesStockholders' equity2. Prepare the journal entry to record the repurchase. (If no entry is required for a transaction/event, select "No journalentry required" in the first account field. Enter your answers in whole dollars not in millions (i.e., 1,000,000 not 1.0).)View transaction listJournal entry worksheet1Record the repurchase of common stock for $56 per share.Note: Enter debits before credits.TransactionGeneral JournalDebitCredit1

Journal entry is a primary entry that records the financial transactions initially.

Rock Bottom Gold Company recently repurchased 7.09 million shares of its common stock for $56 per share. The intent of the repurchase was to increase earnings per share to be more in line with competitors.

Rock Bottom Gold Company recently repurchased 7.09 million shares of its common stock for $56 per share. The intent of the repurchase was to increase earnings per share to be more in line with competitors.

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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