Question
1.24,800 shares reacquired by Elixir Corporation for $48 per share were exchanged for undeveloped land that has an appraised value of $1,740,700. At the time
1.24,800 shares reacquired by Elixir Corporation for $48 per share were exchanged for undeveloped land that has an appraised value of $1,740,700. At the time of the exchange, the common stock was trading at $63 per share on an organized exchange. (a) Prepare the journal entry to record the acquisition of land assuming that the purchase of the stock was originally recorded using the cost method
2.Sprinkle Inc. has outstanding 13,010 shares of $10 par value common stock. On July 1, 2014, Sprinkle reacquired 110 shares at $89 per share. On September 1, Sprinkle reissued 64 shares at $91 per share. On November 1, Sprinkle reissued 46 shares at $85 per share. Prepare Sprinkles journal entries to record these transactions using the cost method.
3.Arantxa Corporation has outstanding 20,430 shares of $5 par value common stock. On August 1, 2014, Arantxa reacquired 270 shares at $84 per share. On November 1, Arantxa reissued the 270 shares at $78 per share. Arantxa had no previous treasury stock transactions. Prepare Arantxas journal entries to record these transactions using the cost method.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started