Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Videos
Question
Chapter 15, Problem 15.5MC
To determine
To identify: The correct option.
Given information:
Issued 30,000 shares of $5 par value at $9 per share.
Buy back 10,000 shares at $8 per share
Resold 5,000 shares at the rate of $12 per share.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
At the beginning of the year, Corporation A purchased 8,000 shares of Corporation B's
common stock for $40 per share. B reported net income of $120,000 for the year and paid
dividends of $45,000. As of December 31, the market value of B's common stock was $42 per
share. Assuming the shares owned by Company A represent 10% of the total outstanding
stock of Company B, how much income should A report from its investment in B for the year if
the shares are considered trading securities? $4,500 $12,000 $20,500
On December 29, Adams Apples purchased 1,000 shares of General Electric common stock for
$19,000 and placed the investment in an active trading account for immediate resale. On
December 31, the market value of the stock is $20 per share. What is the appropriate reporting
category for this investment, and at what amount will Adams Apples report it in the year-end
balance sheet?
On June 8, Cullumber Ltd. was incorporated and issued 31,800 common shares for $318,000. On August 19, an additional 7,950
shares were issued for $95,400. On November 2, the company paid $30,528 to repurchase 3,180 common shares and on December 7
it paid $55,120 to repurchase 4,240 common shares.
(a)
Your answer is partially correct.
Calculate the average cost of the common shares on June 8, August 19, November 2, and December 7. (Round answers to 2 decimal
places, e.g. 15.25.)
Average Cost
June 8
Aug. 19
GA
10.00
$
10.40
Nov. 2
$
Dec. 7
$
13.00
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
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Kettle Inc. was organized on January 2, Year 1, with 6,000,000 authorized and outstanding shares of $1 par value common stock. During Year 1, the company had the following capital transactions: January 5 issued 1,700,000 shares at $16 per share. July 27 purchased 200,000 shares at $14 per share. November 25 sold 120,000 shares of treasury stock at $18 per share. Kettle used the cost method to record the purchase of the treasury shares. What would be the balance in the APIC - Treasury Stock account at December 31, Year 1? Correct answer is $480,000 Please, explain every step.arrow_forwardOn 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_forwardplease explain to me in clear steps how to solve this question.arrow_forward
- Lucky Corporation began the year with a simple capital structure consisting of $240,000 shares of outstanding common stock. On April 1,---5000 additional common shares were issued, and another 30,000 common shares were issued on August 1. The company had net income for the year $589,375. Required Calculate the earnings per share of common stock.arrow_forwardOn February 22, Stewart Corporation acquired 6,000 shares of the 210,000 outstanding shares of Edwards Co, common stock at $29.80 plus commission charges of $1,200. On June 1, a cash dividend of $1.10 per share was received. On November 12, 2,000 shares were sold at $36 less commission charges of $240.arrow_forwardSuppose a company purchases 2,000 shares of its own $1 par value common stock for $16 per share. The company then resells 400 of these shares for $20 per share. Which of the following is recorded at the time of the resale? a. Credit Common Stock for $400. b. Credit Treasury Stock for $8,000. c. Credit Common Stock for $8,000. d. Credit Additional Paid-In Capital for $1,600.arrow_forward
- Incentive Corporation was authorized to issue 12,000 shares of common stock, each with a $2 par value. During its first year, the following selected transactions were completed: a. Issued 5,500 shares of common stock for cash at $20 per share. b. Issued 1,500 shares of common stock for cash at $23 per share. 4. Incentive Corporation has $45,000 in the company's bank account. At year-end, the accounts reflected a profit of $100. What is the maximum amount of cash dividends the company can declare and distribute? Maximum amount of cash dividends $ 100arrow_forwardOn June 8, Pharoah Ltd. was incorporated and issued 33,600 common shares for $336,000. On August 19, an additional 8,400 shares were issued for $100,800. On November 2, the company paid $32.256 to repurchase 3,360 common shares and on December 7 it paid $58.240 to repurchase 4,480 common shares. (a) Your answer is correct. Calculate the average cost of the common shares on places, ag. 15.25.) June 8 Aug 19 Nov. 2 Dec. 7 $ $ 5 $ Average Cost 10 10.40 10.40 10.40 hares on June 8, August 19. November 2, and December 7. (Round arewers to 2 decimalarrow_forwardMyrtle Corporation began the year with a simple capital structure consisting of 480,000 shares of outstanding common stock. On April 1, 10,000 additional common shares were issued, and another 60,000 common shares were issued on August 1. The company had net income for the year of $589,375. Calculate the earnings per share of common stock. Round to two decimal points.arrow_forward
- CNE financed this new equipment purchase through a combination of debt and equity. On January 1st, CNE received a $800, 000 loan from a commercial bank at 5% interest. Starting on February 1 st principal and interest payments of 11, 700 are to be paid on a monthly basis over 7 years. Also, in January CNE issued $750, 000 of common stock. In this offering, 100, 000 shares were issued at a par value of $3 per share. Using an amortization schedule, in the month of April, what will be CNE Inc. interest payment on its $800, 000 loan? In the month of April what is the remaining dollar amount balance on CNE Inc.'s loan?arrow_forwardSunshine Clothing Company issues 1,000 shares of $1 par value common stock at $33 per share. Later in the year, the company decides to purchase 100 shares at a cost of $36 per share. Determine the financial statement effects of the purchase of treasury stock. (Amounts to be deducted should be entered with minus sign.) Revenues Assets Income Statement Expenses Balance Sheet Liabilities Net Income Stockholders' Equityarrow_forwardThe beginning balance sheet of Stamp Source Co. included a $700,000 investment in Eaten stock (20% ownership, Stamp has significant influence over Eaten). During the year, Stamp Source completed the following investment transactions: i (Click the icon to view the transactions.) Read the requirements. Requirement 1. Journalize the transactions for the year of Stamp Source. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. If no entry is required, select "No entry required" on the first line of the Accounts and Explanation column and leave the remaining cells blank.) Mar. 3: Purchased 6,000 shares at $12 per share of Jack Software common stock as a long-term equity investment, representing 1% ownership Date Accounts and Explanation Credit Mar. 3 Requirements 1. Journalize the transactions for the year of Stamp Source. 2. Post transactions to T-accounts to determine the December 31, 2024, balances related to the investment and…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
Financial instruments products; Author: fi-compass;https://www.youtube.com/watch?v=gvxozM3TUIg;License: Standard Youtube License