Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 15, Problem 15.10BE
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On May 3, Zirbal Corporation purchased 4,500 shares of its own stock for $31,500 cash. On November 4, Zirbal reissued
1,350 shares of this treasury stock for $10,800.
Prepare the May 3 and November 4 journal entries to record Zirbal's purchase and reissuance of treasury stock.
View transaction list
Journal entry worksheet
On January 1, Vermont Corporation had 36,300 shares of $9 par common stock issued and outstanding. All 36,300 shares had been issued in a prior period at
$22 per share. On February 1, Vermont purchased 1,000 shares of treasury stock for $27 per share and later sold the treasury shares for $21 per share on
March 1.
The entry to journalize the purchase of the treasury shares on February 1 would include a
O a. debit to a loss account for $5,000.
b. credit to Treasury Stock for $27,000.
c. credit to a gain account for $5,000.
d. debit to Treasury Stock for $27,000.
On January 1, Vermont Corporation had 49,400 shares of $11 par value common stock issued and outstanding. All 49,400 shares had been issued in a prior period at $22
per share. On February 1, Vermont purchased 910 shares of treasury stock for $24 per share and later sold the treasury shares for $19 per share on March 1.
The journal entry to record the purchase of the treasury shares on February 1 would include a
debit to a loss account for $1,820.
credit to a gain account for $1,820.
credit to Treasury Stock for $21,840.
debit to Treasury Stock for $21,840.
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Chapter 15 Solutions
Intermediate Accounting (2nd Edition)
Ch. 15 - Prob. 15.1QCh. 15 - What are the retained earnings of a firm?Ch. 15 - Prob. 15.3QCh. 15 - Prob. 15.4QCh. 15 - Does an entity have to legally dissolve treasury...Ch. 15 - Prob. 15.6QCh. 15 - Prob. 15.7QCh. 15 - Prob. 15.8QCh. 15 - Prob. 15.9QCh. 15 - Prob. 15.10Q
Ch. 15 - Prob. 15.11QCh. 15 - Do firms often use stock dividends to avoid...Ch. 15 - Prob. 15.13QCh. 15 - What is included in other comprehensive income?Ch. 15 - Is a specific format required for reporting...Ch. 15 - Prob. 15.16QCh. 15 - Boone Corporations outstanding capital stock on...Ch. 15 - Prob. 15.2MCCh. 15 - Prob. 15.3MCCh. 15 - Prob. 15.4MCCh. 15 - Prob. 15.5MCCh. 15 - Prob. 15.6MCCh. 15 - Prob. 15.7MCCh. 15 - Prob. 15.1BECh. 15 - Stockholders Equity Terminology, U.S. GAAP, IFRS....Ch. 15 - Common Stock Issuance, No Par Value. Perdido...Ch. 15 - Prob. 15.4BECh. 15 - Prob. 15.5BECh. 15 - Prob. 15.6BECh. 15 - Prob. 15.7BECh. 15 - Prob. 15.8BECh. 15 - Treasury Stock Transactions. Ginger Spice...Ch. 15 - Treasury Stock Transactions. On March 15, Chief...Ch. 15 - Treasury Stock Transactions, Retirement. Using the...Ch. 15 - Prob. 15.12BECh. 15 - Prob. 15.13BECh. 15 - Prob. 15.14BECh. 15 - Common Stock Issuance, Stated Value, Issue Costs....Ch. 15 - Common Stock Issuance. Par Value, Issue Costs,...Ch. 15 - Prob. 15.3ECh. 15 - Prob. 15.4ECh. 15 - Prob. 15.5ECh. 15 - Treasury Stock Transactions, Retirement,...Ch. 15 - Treasury Stock Transactions, Disclosure. The...Ch. 15 - Treasury Stock Transactions. Several years ago,...Ch. 15 - Prob. 15.9ECh. 15 - Prob. 15.10ECh. 15 - Prob. 15.11ECh. 15 - Prob. 15.12ECh. 15 - Preferred Stock Issuance Dividends, Disclosure....Ch. 15 - Prob. 15.14ECh. 15 - Prob. 15.15ECh. 15 - Prob. 15.16ECh. 15 - Prob. 15.17ECh. 15 - Prob. 15.18ECh. 15 - Prob. 15.19ECh. 15 - Prob. 15.20ECh. 15 - Prob. 15.21ECh. 15 - Prob. 15.22ECh. 15 - Prob. 15.1PCh. 15 - Prob. 15.2PCh. 15 - Prob. 15.3PCh. 15 - Prob. 15.4PCh. 15 - Prob. 15.5PCh. 15 - Common Stock Issuance, Treasury Stock, Dividends,...Ch. 15 - Prob. 15.7PCh. 15 - Prob. 15.8PCh. 15 - Prob. 15.9PCh. 15 - Prob. 1JCCh. 15 - Judgment Case 2: Impact of Judgment in Accounting...Ch. 15 - Surfing the Standards Cases Surfing the Standards...Ch. 15 - Prob. 1BCCCh. 15 - Prob. 2BCC
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- Prepare general journal entries for the following transactions of GOTE Company: (a) Received subscriptions for 10,000 shares of 2 par common stock for 80,000. (b) Received payment of 30,000 on the stock subscription in transaction (a). (c) Received the balance in full for the stock subscription in transaction (a) and issued the stock. (d) Purchased 1,000 shares of its own 2 par common stock for 7.50 a share. (e) Sold 500 shares of the stock on transaction (d) for 8.50 a share.arrow_forward1. Record, in journal entry form, the following transactions, assuming the company plans on holding the investments for trading purposes: April 16 - Purchased 300 shares of Ameco for $25 per share. • May 2 - Purchased 1,000 shares of Rattle Inc. for $12.50 per share. • June 19 - Sold 100 Ameco shares for $32.75 per share. • October 7 - Purchased 550 shares of BMC for $27.80 per share. • November 30 - Received a dividend of $0.25 per share from Rattle. • December 12 - Sold half the shares in BMC for $21.00 per share. 2. Record any required journal entries on December 31, the company's year-end.arrow_forwardON JANUARY 1, VERMONT CORPORATION HAD 39,600 SHARES OF $10 PAR VALUE COMMON STOCK ISSUED AND OUTSTANDING. ALL 39,600 SHARES HAD BEEN ISSUED IN A PRIOR PERIOD AT $21 PER SHARE. ON FEBRUARY 1, VERMONT PURCHASED 1,020 SHARES OF TREASURY STOCK FOR $28 PER SHARE AND LATER SOLD THE TREASURY SHARES FOR $19 PER SHARE ON MARCH 1. THE JOURNAL ENTRY TO RECORD THE PURCHASE OF THE TREASURY SHARES ON FEBRUARY 1 WOULD INCLUDE A: A. CREDIT TO A GAIN ACCOUNT FOR $7,140 B. CREDIT TO TREASURY STOCK FOR $28,560 C. DEBIT TO TREASURY STOCK FOR $28,560 D. DEBIT TO A LOSS ACCOUNT FOR $7,140 NEED ENTRY IN TABLE FORMAT WHICH STATEMENT BELOW REGARDING A SHARE REPURCHASE IS TRUE? A. THE COMPANY REPURCHASING SHARES IS NOT ENTITLED TO VOTE. B. REPURCHASING SHARES SHRINK A COMPANY'S ASSETS AND EQUITY. C. A SHARE REPURCHASE GROWS A COMPANY'S ASSETS AND EQUITY. D. REPURCHASING SHARES INCREASES RETAINED EARNINGS.arrow_forward
- On May 3, Zirbal Corporation purchased 7,000 shares of its own stock for $49,000 cash. On November 4, Zirbal reissued 1,050 shares of this treasury stock for $8,400. Prepare the May 3 and November 4 journal entries to record Zirbal's purchase and reissuance of treasury stock. View transaction list Journal entry worksheet 1 2 Record the purchase of 7,000 shares of its own stock for $49,000 cash. Note: Enter debits before credits. Date May 03 Record entry General Journal Clear entry Debit Credit View general journal >arrow_forwardOn May 3, Zirbal Corporation purchased 8,500 shares of its own stock for $93,500 cash. On November 4, Zirbal reissued 1,750 sha of this treasury stock for $21,000. Prepare the May 3 and November 4 journal entries to record Zirbal's purchase and reissuance of treasury stock. View transaction list Journal entry worksheet < 1 2 Record the purchase of 8,500 shares of its own stock for $93,500 cash. Note: Enter debits before credits. Date May 03 Record entry General Journal Clear entry Debit Credit View general journalarrow_forwardA corporation purchased for cash 5,000 shares of its own $10 par common stock at $25 a share. In the following year, it sold 2,000 of the treasury shares at $28 a share for cash. (a) Journalize the entries to record the purchase (treasury stock is recorded at cost). (b) Journalize the entries to record the sale of the stock. (for each Journal Entry, omit the step of providing a brief explanation) JOURNAL Date Post. DR CR (a) (b)arrow_forward
- On January 1, Vermont Corporation had 39,800 shares of $11 par value common stock issued and outstanding. All 39,800 shares had been issued in a prior period at $20 per share. On February 1, Vermont purchased 950 shares of treasury stock for $24 per share and later sold the treasury shares for $18 per share on March 1. The journal entry for the purchase of the treasury shares on February 1 would include a a.debit to a loss account for $3,800 b.credit to Treasury Stock for $22,800 c.credit to a gain account for $3,800 d.debit to Treasury Stock for $22,800arrow_forwardOn May 3, Zirbal Corporation purchased 5,500 shares of its own stock for $49,500 cash. On November 4, Zirbal reissued 1,450 shares of this treasury stock for $14,500. Prepare the May 3 and November 4 journal entries to record Zirbal’s purchase and reissuance of treasury stock.arrow_forwardPlease answer question completely and correctlyarrow_forward
- On February 16, Candy Home Goods, Incorporated (CHG) acquired 7,000 shares of its own shares at a cost of $39 per share. On April 29, CHG sold 2,800 of the 7,000 shares of its treasury stock for $59 per share. On June 4, CHG sold the remaining 4,200 shares of treasury stock for $19 per share. What are the necessary journal entries to record these transactions? (Record debits first, then credits. Exclude explanations from any journal entries.) On February 16, Candy Home Goods, Incorporated (CHG) acquires 7,000 shares of its own shares at a cost of $39 per share. Account February 16arrow_forwardOn January 23, 16,000 shares of Tolle Company are acquired at a price of $24 per share plus a $160 brokerage commission. On April 12, a $0.40-per-share dividend was received on the Tolle Company stock. On June 10, 6,400 shares of the Tolle Company stock were sold for $32 per share less a $100 brokerage commission. Prepare the journal entries for the original purchase, the dividend, and the sale under the cost method. Refer to the Chart of Accounts for exact wording of account titles. When required, round your answers to the nearest dollar.arrow_forwardOn May 3, Zirbal Corporation purchased 4,000 shares of its own stock for $36,000 cash. On November 4, Zirbal reissued 850 shares of this treasury stock for $8,500. Prepare the May 3 and November 4 journal entries to record Zirbal's purchase and reissuance of treasury stock. View transaction list Journal entry worksheet 1 Record the purchase of 4,000 shares of its own stock for $36,000 cash. Note: Enter debits Date General Journal Debit Credit May 03arrow_forward
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