Treasury Stock TransactionsLava Lake Inc. bottles and distributes spring water. On February 11 of the current year, Lava Lake reacquired 180,000 shares of its common stock at $17 per share. On April 30, Lava Lake Inc. sold 90,000 of thereacquired shares at $20 per share. On August 22, Lava Lake Inc. sold 30,000 shares at $15 per share.a. Journalize the transactions of February 11, April 30, and August 22. If an amount box does not require an entry, leave it blank.Feb. 11 Treasury StockCashApr. 30 CashTreasury StockPaid-In Capital from Sale of Treasury StockAug. 22 CashPaid-In Capital from Sale of Treasury StockTreasury Stock b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year?Creditc. For what reasons might Lava Lake have purchased the treasury stock?<>All of these reasons.reeubaun

Date Account Titles and Explanation Debit Credit Feb'11 Treasury Stock (180,000 shares X $ 17…

Answered: Treasury Stock Transactions Lava Lake…

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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January 1: Walgreens reacquires 2,400 shares of its $18 par value Common Stock for $79 per share.March 5: Walgreens reissues 1,200 of the above-mentioned shares for $90 per share. Using the above information, the journal entry to record the March 5th transaction will be: Select one: a. Debit Credit Cash 108,000 Treasury Stock 108,000 b. Debit Credit Cash 108,000 Treasury Stock 94,800 APIC – TS 13,200 c. Debit Credit Cash 108,000 Treasury Stock 21,600 APIC – TS 86,400 d. Debit Credit Cash 108,000 Treasury Stock 94,800 Gain on Sale of TS 13,200 e. Debit Credit Cash 108,000 Treasury Stock 94,800 Investment Income 13,200
Treasury Stock Transactions Yard Spray Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On January 31 of the current year, Yard Spray Inc. reacquired 16,200 shares of its common stock at $33 per share. On June 14, 10,200 of the reacquired shares were sold at $36 per share, and on November 23, 3,900 of the reacquired shares were sold at $38. a. Journalize the transactions of January 31, June 14, and November 23. If an amount box does not require an entry, leave it blank. Jan. 31 Treasury Stock v Cash v June. 14 Cash v Treasury Stock v Paid-In Capital from Sale of Treasury Stock Nov. 23 Cash v Treasury Stock v Paid-In Capital from Sale of Treasury Stock v Feedback b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year? Credit v c. What is the balance in Treasury Stock on December 31 of the current year? Debit v d. How will the balance in Treasury Stock be reported on the balance sheet? As a deduction…
prepare general journal entries for these transactions
Treasury Stock Transactions SprayCo Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On March 9 of the current year, SprayCo reacquired 17,200 shares of its common stock at $43 per share. On June 9, 10,800 of the reacquired shares were sold at $46 per share, and on November 13, 4,100 of the reacquired shares were sold at $46. a. Journalize the transactions of March 9, June 9, and November 13. If an amount box does not require an entry, leave it blank. Mar. 9 - Select - - Select - - Select - - Select - June 9 - Select - - Select - - Select - - Select - - Select - - Select - Nov. 13 - Select - - Select - - Select - - Select - - Select - - Select - b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year?$fill in the blank f49e5d019fce04b_1 c. What is the balance in Treasury Stock on December 31 of the current year?$fill…
Treasury Stock Transactions Yard Spray Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On January 31 of the current year, Yard Spray Inc. reacquired 17,000 shares of its common stock at $26 per share. On June 14, 10,700 of the reacquired shares were sold at $28 per share, and on November 23, 4,100 of the reacquired shares were sold at $29. Question Content Area a. Journalize the transactions of January 31, June 14, and November 23. If an amount box does not require an entry, leave it blank. Jan. 31 - Select - - Select - - Select - - Select - June. 14 - Select - - Select - - Select - - Select - - Select - - Select - Nov. 23 - Select - - Select - - Select - - Select - - Select - - Select - Question Content Area b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year?$fill in the blank 7d4c5e016fddfda_1 c. What is…
Nutritious Pet Food Company’s board of directors declares a cash dividend of $1.00 per common share on November 12. On this date, the company has issued 11,000 shares but 2,200 shares are held as treasury shares. What is the journal entry to record the declaration of this dividend? If an amount box does not require an entry, leave it blank. Nov. 12
Entries for Stock Dividends Paris Corporation has 20,000 shares of $80 par common stock outstanding. On June 8, Paris Corporation declared a 4% stock dividend to be issued August 12 to stockholders of record on July 13. The market price of the stock was $118 per share on June 8. Journalize the entries required on June 8, July 13, and August 12. For a compound transaction, if an amount box does not require an entry, leave it blank. If no entry is required, select "No Entry Required" and leave the amount boxes blank, Jun. 8 Jul. 13 Aug. 12
Treasury Stock Transactions Biscayne Bay Water Inc. bottles and distributes spring water. On May 14 of the current year, Biscayne Bay Water Inc. reacquired 2,300 shares of its common stock at $52 per share. On September 6, Biscayne Bay Water Inc. sold 1,800 of the reacquired shares at $55 per share. The remaining 500 shares were sold at $49 per share on November 30. a. Journalize the transactions of May 14, September 6, and November 30. If an amount box does not require an entry, leave it blank. May 14 Sept. 6 Nov. 30 36 b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year? $ c. Where will the balance in Paid-In Capital from Sale of Treasury Stock be reported on the balance sheet? d. For what reasons might Biscayne Bay Water Inc. have purchased the treasury stock?
Treasury Stock Transactions Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 6,000 shares of its common stock at $70 per share. On September 22, Mystic Lake sold 4,200 of the reacquired shares at $78 per share. The remaining 1,800 shares were sold at $67 per share on November 23. a. Journalize the transactions of July 9, September 22, and November 23. If an amount box does not require an entry, leave it blank. July 9 Sept. 22 Nov. 23 b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year? c. For what reasons might Mystic Lake Inc. have purchased the treasury stock?
Question Content Area Entries for treasury stock On May 27, Mama Mia Inc. reacquired 79,000 shares of its common stock at $10 per share. On August 3, Mama Mia sold 53,000 of the reacquired shares at $13 per share. On November 14, Mama Mia sold the remaining shares at $8 per share. Journalize the transactions of May 27, August 3, and November 14. If an amount box does not require an entry, leave it blank. Date Account Debit Credit May 27 Aug. 3 Nov. 14
Journalize the following selected transactions completed during the current fiscal year: Date Transaction February 1 The board of directors declared a stock split that reduced the par of common shares from $100 to $20. This action increased the number of outstanding shares to 500,000. February 11 Purchased 25,000 shares of the company's own stock at $44, recording the treasury stock at cost. May 1 Declared a dividend of $2.50 per share on the outstanding shares of common stock. May 15 Paid the dividend declared on May 1. October 19 Declared a 2% stock dividend on the common stock outstanding (the fair market value of the stock to be issued is $55). November 12 Issued the certificates for the common stock dividend declared on October 19. If no entry is required, select "No Entry Required" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank.
Treasury Stock Transactions Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 4,900 shares of its common stock at $75 per share. On September 22, Mystic Lake sold 3,400 of the reacquired shares at $84 per share. The remaining 1,500 shares were sold at $71 per share on November 23. a. Journalize the transactions of July 9, September 22, and November 23. If an amount box does not require an entry, leave it blank. July 9 Treasury Stock ✓ Cash Sept. 22 Cash Nov. 23 Treasury Stock ✓ Paid-In Capital from Sale of Treasury Stock Feedback Cash Paid-In Capital from Sale of Treasury Stock ✓ Treasury Stock 367,500 0 285,600 0 0 106,500 6,000 0 ✓ 0 367,500 c. For what reasons might Mystic Lake Inc. have purchased the treasury stock? All of these reasons. ✓ 0 228,000 X 57,600 X 0 0 112,500 Check My Work The repurchase of shares, known as treasury stock, is typically recorded using the cost method. When the treasury stock is resold, what is…

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