FINANCIAL & MANAGERIAL ACCOUNTING (ACCES
FINANCIAL & MANAGERIAL ACCOUNTING (ACCES
9th Edition
ISBN: 9781265484040
Author: Wild
Publisher: MCG
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Chapter 11, Problem 13E

a

To determine

Concept Introduction:

Treasure stock is the stock reacquired by a corporation, a corporation buys back its own stock for several reasons such as, to use its shares to acquire another corporation, to avoid a takeover of a company, to give them to employees as compensation and to maintain a strong market for their stock.

The journal entries record the given transactions for S systems.

b

To determine

Concept Introduction:

Treasure stock is the stock reacquired by a corporation, a corporation buys back its stock for several reasons such as, to use its shares to acquire another corporation, to avoid a takeover of a company, to give them to employees as compensation, and to maintain a strong market for their stock.

The stockholder’s equity section after October 11 treasury stock purchase.

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Prepare journal entries to record the following transactions for Sherman Systems.a. Purchased 6,600 shares of its own common stock at $41 per share on October 11.b. Sold 1,400 treasury shares on November 1 for $47 cash per share.c. Sold all remaining treasury shares on November 25 for $40 cash per share. On October 10, the stockholders’ equity section of Sherman Systems appears as follows.  Common stock–$10 par value, 88,000 shares authorized, issued, and outstanding $ 880,000 Paid-in capital in excess of par value, common stock 296,000 Retained earnings 992,000 Total stockholders’ equity $ 2,168,000 Prepare journal entries to record the following transactions for Sherman Systems.a. Purchased 6,600 shares of its own common stock at $41 per share on October 11.b. Sold 1,400 treasury shares on November 1 for $47 cash per share.c. Sold all remaining treasury shares on November 25 for $40 cash per share.

Chapter 11 Solutions

FINANCIAL & MANAGERIAL ACCOUNTING (ACCES

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