WW Corp. resells 400 shares of its own common stock for $20 per share. WW had acquired these shares two months before for $14 per share.  The resale of this stock would be recorded with a:   Select one: a. Debit to Common Stock for $8,000 b. Credit to Additional Paid-In Capital for $800 c. Credit to Treasury Stock for $8,000 d. Credit to Additional Paid-In Capital for $2,400 e. Credit to Additional Paid-In Capital for $2,000

Q: On January 23, 16,000 shares of Tolle Company are acquired at a price of $24 per share plus a $160…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Treasury stock that had been purchased for $4,760 last month was reissued this month for $5,640. The…

A: Treasury stock: The shares which were reacquired or bought back by the company, but not formally…

Q: Elroy Corporation repurchased 3,400 shares of its own stock for $40 per share. The stock has a par…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Culver Inc.’s $10 par value common stock is actively traded at a market price of $16 per share.…

A: Value of Land = No. of shares issued x  market price per share = 6,000 shares x $16 per share =…

Q: Dexter Corporation purchased from its stockholders 4,000 shares of its own previously issued stock…

A: >Treasury stock are the shares that have been purchased by the original issuing company from its…

Q: Nexis Corp. issues 1,970 shares of $9 par value common stock at $17 per share. When the transaction…

A: The journal entry to record the issue of  shares as follows:

Q: Emma Consulting had previously purchased 2,439 shares of treasury stock for $8 per share.  Emma then…

A: Solution: Cost of treasury stock sold = 935*$8 = $7,480

Q: On May 1, Laney Company purchases 4,000 shares of its own $1 par value stock for $24,000. Which…

A: Treasury stock is the entity's own shares which are bought back or repurchased by the entity from…

Q: XYZ Company issues 5000 shares of stock for $30/share. The stock has a par value of $5/share. The…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Q: On September 12, 3,800 shares of Aspen Company are acquired at a price of $60.00 per share plus a…

A: Brokerage commission paid to purchase the shares will be added to the cost of the shares.

Q: Treasury stock that had been purchased for $4,166 last month was reissued this month for $5,455. The…

A: Treasury stock: Treaseury stock are the shares which are bought back by the company from the open…

Q: On May 1, Laney Company purchases 4,000 shares of its own $1 par value stock for $24,000. On October…

A: Answer.  Treasury stock is to be recorded at cost. That is cost of purchase.  Cost of treasury stock…

Q: Badger Corporation issued 5,000 shares of its $5 par value common stock in payment for attorney…

A: The journal entries are prepared to record the transactions on regular basis. The shares issued at…

Q: 1. Record, in journal entry form, the following transactions, assuming the company plans on holding…

A: Investment in trading securities carries a debit balance, so debiting it further increases the…

Q: Iris Corporation makes an investment in 200 shares of Harolds Company’s common stock. The…

A: If an investment is purchased then there are two methods to record the investments namely, the cost…

Q: Clark Corporation purchased 200 shares of its own $1 par value common stock for $20 per share. What…

A: Journal Entry:Journal entry refers to the recoding of the transactions of the business in the…

Q: Sneed Corporation issues 11,600 shares of $45 par preferred stock for cash at $67 per share. The…

A: Total par value of preferred stock issued = No. of shares issued x par value per share = 11,600…

Q: Marigold Inc., issues 500 shares of $10 par value common stock and 100 shares of $100 par value…

A: A journal entry is a basic accounting record that is used to chronologically track financial…

Q: Nexis Corp. issues 1,980 shares of $10 par value common stock at $16 per share. When the transaction…

A: The objective of the question is to determine the correct journal entry for the issuance of common…

Q: Sunshine Clothing Company issues 1,000 shares of $1 par value common stock at $33 per share. Later…

A: Stock repurchase, also known as buying back shares or repurchasing treasury stock, is when a company…

Q: Sheridan Roofing Company originally issued 7800 shares of $10 par value common stock for $234000…

A: Treasury stock is reacquired shares by the company. The required share can be the issued in future.…

Q: Alma Corp. issues 2,150 shares of $9 par common stock at $15 per share. When the transaction is…

A: When the share is issued at an excess price than a par value of a share, it is recorded to the…

Q: Elroy Corporation repurchased 2,100 shares of its own stock for $55 per share. The stock has a par…

A: The treasury stock includes the own shares of the company repurchased from the sharesholders. The…

Q: Treasury stock that had been purchased for $3,908 last month was reissued this month for $5,262. The…

A: Introduction: A journal entry is a record of a business deal in the accounting system of the…

Q: Smart Poly Machine issues 5,000 shares of 5%, $10 Par Value Preferred Stock for $10,000 cash,…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Vaughn Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value…

A: Journal entries are the primary reporting of the business transactions in the books of accounts.…

Q: (a) A corporation issues 8,000 shares of its $1 par value common stock to provide funds for further…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Nash Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred…

A: Common Stocks and Preferred Stocks are the form of equity issued by an organization to raise funds.…

Q: Next Level Morgan Corporation issues 500 “packages” of securities for $180 per package on December…

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

Q: On May 3, Zirbal Corporation purchased 4,500 shares of its own stock for $31,500 cash. On November…

A: Buy back of share means buying our own share from the open marked, these share are technically…

Q: edit to Additional Paid in Capital $40,000. bit to Legal Expense $40,000. ebit to Legal Expense…

A: The journal entry for the transaction would debit legal expense and credit common stock and…

Q: WW Corp. resells 400 shares of its own common stock for $20 per share. WW had acquired these shares…

A: The treasury stock includes the shares when the company acquires its own shares back from the…

Q: If Norben Company issues 4,000 shares of $5 par value common stock for $140,000, the account Common…

A: Paid-in Capital in Excess of Par represents the amount investors pay for shares above their nominal…

Q: Foley Co. bought 50 shares of its stock for $8 per share to be held as Treasury Stock. Record this…

A: The treasury stock are the purchase of its own shares from the market.

Q: On January 23, 15,000 shares of Tolle Company are acquired at a price of $25 per share plus a $145…

A: Given that: Number of shares acquired = 15000 Price per share = $25 per share Brokerage Commission =…

Q: 990; Credit to Additional Paid-in Capital, $10 21.000

A: A journal entry is a basic accounting record that is used to chronologically track financial…

Q: Surfer Girl Clothing Company issues 1,000 shares of $1 par value common stock at $25 per share.…

A: When a company purchases its own stock, it is referred to as treasury stock. This repurchase can…

Q: Vaughn Corporation sold 390 shares of treasury stock for $55 per share. The cost for the shares was…

A: A journal entry is a formal accounting record used to capture and record financial transactions in a…

Q: 5,000 shares of common stock for $16 t to Common Stock for $5.000

A: Answer : Issue share =5000 Stated Value per share = $12 Value of common stock = No. of common share…

Q: The Snow Corporation issues 9,800 shares of $52 par value preferred stock for cash at $66 per share.…

A: Definition: Preferred stock: The stock that provides a fixed amount of return (dividend) to its…

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.