The number of shares traded in the market for Company (S) amounted to 100,000 ordinary shares with a nominal value of 1 dinar. Those shares were issued at a price of 10 dinars per share. The following operations took place in that company. 1. The company purchased 12,000 of its shares as treasury shares at a price of 30 dinars per share. 2. 5,000 treasury shares were resold at a price of 38 dinars per share. 3. 4,000 treasury shares were resold at a price of 27 dinars per share. Required: Make the necessary daily entries to record the previous operations using the cost method.
The number of shares traded in the market for Company (S) amounted to 100,000 ordinary shares with a nominal value of 1 dinar. Those shares were issued at a price of 10 dinars per share. The following operations took place in that company. 1. The company purchased 12,000 of its shares as treasury shares at a price of 30 dinars per share. 2. 5,000 treasury shares were resold at a price of 38 dinars per share. 3. 4,000 treasury shares were resold at a price of 27 dinars per share. Required: Make the necessary daily entries to record the previous operations using the cost method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:The number of shares traded in the market for Company (S) amounted to 100,000 ordinary shares with a nominal value of
that company.
1 dinar. Those shares were issued at a price of 10 dinars per share. The following operations took place
1. The company purchased 12,000 of its shares as treasury shares at a price of 30 dinars per share.
2. 5,000 treasury shares were resold at a price of 38 dinars per share.
3. 4,000 treasury shares were resold at a price of 27 dinars per share.
Required: Make the necessary daily entries to record the previous operations using the cost method.
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