Prepare the journal entries for the purchase and sales of treasury stock .

Question

Riverside Technologies reported total assets of $1,150,000 and total liabilities of $490,000. If the company had net income of $190,000 and paid $45,000 in dividends, what is its total equity at the end of the year?

Answer 1

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Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 12, Problem 15E

A.

To determine

Prepare the journal entries for the purchase and sales of treasury stock.

B.

To determine

Determine the balance in paid in capital from sale of treasury stock on December 31 of the current year.

C.

To determine

Determine the balance in the treasury stock on December 31 of the current year.

D.

To determine

Describe the way in which balance of treasury stock would be reported on the balance sheet.

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Riverside Technologies reported total assets of $1,150,000 and total liabilities of $490,000. If the company had net income of $190,000 and paid $45,000 in dividends, what is its total equity at the end of the year?

The amount to be recorded on the books

Silver Spoon, a fine-dining restaurant, began its operations in 2015. Its fixed assets had a book value of $950,000 in 2016. The restaurant did not purchase any fixed assets in 2016. The annual depreciation expense on fixed assets was $80,000, and the accumulated depreciation account had a balance of $160,000 on December 31, 2016. What was the original cost of fixed assets owned by the restaurant in 2015 when it started its operations?

Answer 2

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Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 12, Problem 15E

A.

To determine

Prepare the journal entries for the purchase and sales of treasury stock.

B.

To determine

Determine the balance in paid in capital from sale of treasury stock on December 31 of the current year.

C.

To determine

Determine the balance in the treasury stock on December 31 of the current year.

D.

To determine

Describe the way in which balance of treasury stock would be reported on the balance sheet.

Expert Solution & Answer

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Answer 3

Question

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Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 12, Problem 15E

A.

To determine

Prepare the journal entries for the purchase and sales of treasury stock.

B.

To determine

Determine the balance in paid in capital from sale of treasury stock on December 31 of the current year.

C.

To determine

Determine the balance in the treasury stock on December 31 of the current year.

D.

To determine

Describe the way in which balance of treasury stock would be reported on the balance sheet.

Expert Solution & Answer

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Answer 4

Question

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Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 12, Problem 15E

A.

To determine

Prepare the journal entries for the purchase and sales of treasury stock.

B.

To determine

Determine the balance in paid in capital from sale of treasury stock on December 31 of the current year.

C.

To determine

Determine the balance in the treasury stock on December 31 of the current year.

D.

To determine

Describe the way in which balance of treasury stock would be reported on the balance sheet.

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Answer 6

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Answer 7

Chapter 12, Problem 15E

A.

To determine

Prepare the journal entries for the purchase and sales of treasury stock.

B.

To determine

Determine the balance in paid in capital from sale of treasury stock on December 31 of the current year.

C.

To determine

Determine the balance in the treasury stock on December 31 of the current year.

D.

To determine

Describe the way in which balance of treasury stock would be reported on the balance sheet.

Answer 8

Chapter 12, Problem 15E

A.

To determine

Prepare the journal entries for the purchase and sales of treasury stock.

Answer 9

Chapter 12, Problem 15E

A.

To determine

Prepare the journal entries for the purchase and sales of treasury stock.

Answer 10

B.

To determine

Determine the balance in paid in capital from sale of treasury stock on December 31 of the current year.

Answer 11

B.

To determine

Determine the balance in paid in capital from sale of treasury stock on December 31 of the current year.

Answer 12

C.

To determine

Determine the balance in the treasury stock on December 31 of the current year.

Answer 13

C.

To determine

Determine the balance in the treasury stock on December 31 of the current year.

Answer 14

D.

To determine

Describe the way in which balance of treasury stock would be reported on the balance sheet.

Answer 15

D.

To determine

Describe the way in which balance of treasury stock would be reported on the balance sheet.

Answer 16

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Answer 27

Ch. 12 - Of two corporations organized at approximately the...Ch. 12 - A stockbroker advises a client to buy preferred...Ch. 12 - A corporation with both preferred stock and common...Ch. 12 - Prob. 4DQ Ch. 12 - Prob. 5DQ Ch. 12 - Prob. 6DQ Ch. 12 - A corporation reacquires 60,000 shares of its own...Ch. 12 - Prob. 8DQ Ch. 12 - Prob. 9DQ Ch. 12 - Prob. 10DQ

Prepare the journal entries for the purchase and sales of treasury stock .

Solution Summary: The author explains that treasury stock refers to the shares that are reacquired by the corporation but reacquisition does not signify retirement.

Concept explainers

Prepare the journal entries for the purchase and sales of treasury stock.

Determine the balance in paid in capital from sale of treasury stock on December 31 of the current year.

Determine the balance in the treasury stock on December 31 of the current year.

Describe the way in which balance of treasury stock would be reported on the balance sheet.

Chapter 12 Solutions