Seawall Corporation purchased 3,600 shares of its own $1.10 par value common stock for $125,000. As a result of this transaction, the company's stockholders' equity A. increased by $3,960. B. decreased by $125,000. C. increased by $125,000. D. increased by $121,040.

Seawall Corporation purchased 3,600 shares of its own $1.10 par value common stock for $125,000. As a result of this transaction, the company's stockholders' equity A. increased by $3,960. B. decreased by $125,000. C. increased by $125,000. D. increased by $121,040.

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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Dallas Corporation purchased 300 shares of its own $10 par value common stock for $7,500. Later, these shares are sold for $8,000 cash. The journal entry to record the sale includes a: Select one: a. $500 increase to Paid-in Capital from Treasury Stock b. $4,800 increase to Paid-in Capital from Treasury Stock c. $500 increase to Gain on Sale of Treasury Stock d. None of the above
Instructions ait of AC Journal On February 22, Stewart Corporation acquired 7,200 shares of the 200,000 outstanding shares of Edwards Co. common stock at $42 plus commission charges of $170. On June 1, a cash dividend of $1.85 per share was received. On November 12, 3,100 shares were sold at $49 less commission charges of $165. Using the cost method, journalize the entries for (a) the purchase of stock, (b) the receipt of dividends, and (c) the sale of 3,100 shares. Refer to the Chart of Accounts for exact wording of account titles. When required, round your answers to the nearest dollar.
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Required information [The following information applies to the questions displayed below.] Pumpworks Inc. and Seaworthy Rope Company agreed to merge on January 1, 20X3. On the date of the merger agreement, the companies reported the following data: Balance Sheet Items Assets Cash & Receivables Inventory Land Plant & Equipment Less: Accumulated Depreciation Total Assets Liabilities & Equities Current Liabilities Capital Stock Capital in Excess of Par Value Retained Earnings Total Liabilities & Equities Pumpworks Book Value $ 94,000 112,000 112,000 419,000 (147,000) $ 590,000 $ 69,000 333,000 25,000 163,000 $ 590,000 Fair Value $ 94,000 155,000 154,000 pict 303,000 ure $706,000 $ 69,000 Seaworthy Rope Company Book Value $ 17,000 27,000 7,000 208,000 (62,000) $197,000 $ 22,000 76,500 10,000 88,500 $197,000 Fair Value $ 17,000 39,000 12,000 pict 133,000 ure $201,000 $ 22,000
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