roundcover, Inc. had never had a treasury stock transaction prior to 2016. It experienced the following treasury stock transactions during 2016: 4/1/2016: Reacquired 1,000 shares of its own $5 par common stock, originally sold at $12 a share, for $10 a share. This was the first time that Groundcover had reacquired its own stock. 4/8/2016: Reissued 400 shares at $8 a share. 5/2/2016: Reissued 500 shares at $13 a share. 5/10/2016: Retired the remaining 100 shares. Assume the cost method is used. Refer to Exhibit 15-9. The entry to record the reissuance of 400 shares on 4/8/2016 would include a
roundcover, Inc. had never had a treasury stock transaction prior to 2016. It experienced the following treasury stock transactions during 2016: 4/1/2016: Reacquired 1,000 shares of its own $5 par common stock, originally sold at $12 a share, for $10 a share. This was the first time that Groundcover had reacquired its own stock. 4/8/2016: Reissued 400 shares at $8 a share. 5/2/2016: Reissued 500 shares at $13 a share. 5/10/2016: Retired the remaining 100 shares. Assume the cost method is used. Refer to Exhibit 15-9. The entry to record the reissuance of 400 shares on 4/8/2016 would include a
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Exhibit 15-9
Groundcover, Inc. had never had atreasury stock transaction prior to 2016. It experienced the following treasury stock transactions during 2016:
Assume the cost method is used.
Refer to Exhibit 15-9. The entry to record the reissuance of 400 shares on 4/8/2016 would include a
Groundcover, Inc. had never had a
| 4/1/2016: | Reacquired 1,000 shares of its own $5 par common stock, originally sold at $12 a share, for $10 a share. This was the first time that Groundcover had reacquired its own stock. |
| 4/8/2016: | Reissued 400 shares at $8 a share. |
| 5/2/2016: | Reissued 500 shares at $13 a share. |
| 5/10/2016: | Retired the remaining 100 shares. |
Assume the cost method is used.
Refer to Exhibit 15-9. The entry to record the reissuance of 400 shares on 4/8/2016 would include a
A. credit to Treasury Stock for $3,200
B. credit to Additional Paid-in Capital on Common Stock for $800
C. debit to Retained Earnings for $800
D. debit to Additional Paid-in Capital from Treasury Stock for $800
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