98% Mon 0:34 AM oSave ACCT 313 QA # 2 Week of A... Saved to my Mac Q 3 Draw Design Layout References Mailings Review View Share Com Sensitivi Times New... 12 A A Aa A 5 E B IUX, X ADA Styles Styles 21 Pane te To keep up-to-date with security updates, foxes, and improvements, choose Check for Up... Check for Upd The topic for Class #4 as planned was to be Stock Repurchases and Sales of Treasury Stock (note the correction to the title per your Syllabus). Please answer the following questions to the best of your ability after reading the assignment. QUESTIONS on STOCK REPURCHASES and SALES of TREASURY STOCK 1 Name the two accounting methods to record and report repurchases of Common Stock from the market (Hint Page 15-14) 2 "Companies generally use the cost method," states your textbook. What is the measurement basis used to report the Treasury Stock account balance for repurchased shares? (Hint: This is what we observed at McDonald's.) 3 4 Under the Cost Method does the original price received" when the shares were first issued affect the entries record the acquisition and reissuance of the treasury stock"? Answer YES or NO (Hint Page 15-14). Let's say shares that you previously repurchased are re- sold. If the price per share that you receive on re-sale is HIGHER than the price you paid to repurchase the shares, meaning a "surplus" is generated, what account should you use to record this surplus? (Hint Page 15-15) Please define "outstanding stock in the context of a company that has issued shares to raise capital and then repurchased some of them, leading to a balance in their Treasury Stock account. (Hint Page 15-15) 5 of English (United States) Dl Focus 130%