Rock Bottom Gold Company recently repurchased 7 million shares of its common stock for $47 per share.

Question:

Rock Bottom Gold Company recently repurchased 7 million shares of its for $47 per share. The intent of the repurchase was to increase earnings per share to be more in line with competitors.
Required:
1. Determine the impact of the stock repurchase on assets, liabilities, and stockholders' equity.
2. Prepare the journal entry to record the repurchase.
3. How will this transaction affect the cash flow statement?
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...