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.

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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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