On April 10, 2013, Amelia, Inc., purchased 500 shares of its own common stock in the market

Question:

On April 10, 2013, Amelia, Inc., purchased 500 shares of its own common stock in the market for $24 per share. On September 28, 2013, the company sold 300 of these shares in the open market at a price of $27 per share.

Required:

Use the horizontal model (or write the entry) to show the effects on Amelia, Inc.’s financial statements of

a. The purchase of the treasury stock on April 10, 2013.

b. The sale of the treasury stock on September 28, 2013.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... 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...