In 2012, Mordica Co. issued 300,000 of its 500,000 authorized shares of $10 par value common stock

Question:

In 2012, Mordica Co. issued 300,000 of its 500,000 authorized shares of $10 at $35 per share. In January, 2013, Mordica repurchased 20,000 shares at $30 per share. Assume these are the only stock transactions the company has ever had.
Required:
(a) What are the two methods of accounting for treasury stock?
(b) Prepare the journal entry to record the purchase of treasury stock by the cost method.
(c) 7,000 shares of treasury stock are reissued at $33 per share. Prepare the journal entry to record the reissuance by the cost method.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...