Sanja Marketing Corporation reported the following stockholders equity at December 31 (adapted and in millions): Common stock..................................
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Common stock.................................. $ 365
Additional paid-in capital.................. 286
Retained earnings.............................. 3,190
Treasury stock................................... (690)
Total stockholders’ equity................. $3,151
During the next year, Sanja Marketing purchased treasury stock at a cost of $34 million and resold treasury stock for $15 million (this treasury stock had cost Sanja Marketing $6 million). Record the purchase and resale of Sanja Marketing’s treasury stock. Overall, how much did stockholders’ equity increase or decrease as a result of the two treasury-stock transactions?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Financial Accounting
ISBN: 978-0133427530
10th edition
Authors: Walter Harrison, Charles Horngren, William Thomas
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