Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6. In 2012, Hobbs Corp, acquired 9,000 shares of its own $1 par value common stock at $18 per share. In 2015, Hobbs issued 6,000

6. In 2012, Hobbs Corp, acquired 9,000 shares of its own $1 par value common stock at $18 per share. In 2015, Hobbs issued 6,000 of these shares at $25 per share. Under the cost method, what accounts and what amounts should Hobbs credit in 2015 to record the issuance of the 6,000 shares?

Treasury Stock

Additional paid in capital

Retained Earnings

Common Stock

a

$108,000

$42,000

b

$108,000

$42,000

c

$144,000

$6,000

d

$102,000

$42,000

$6,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fraud Risk Assessment Building A Fraud Audit Program

Authors: Leonard W. Vona

1st Edition

047012945X, 978-0470129456

More Books

Students also viewed these Accounting questions

Question

What are the basic financial decisions ?

Answered: 1 week ago

Question

What is meant by 'Wealth Maximization ' ?

Answered: 1 week ago