Question
a.) Treasury Stock Company A repurchased 25,000 shares of their stock at $15 a share. The companys board of directors believed this was a great
a.) Treasury Stock Company A repurchased 25,000 shares of their stock at $15 a share. The companys board of directors believed this was a great opportunity to repurchase their shares as they were priced way under what they believe they should be worth. Prepare the journal entry for the repurchasing of those shares.
b.) Reissuance of Treasury Stock Company A repurchased 25,000 shares of their stock at $15 a share. The companys board of directors believed this was a great opportunity to repurchase their shares as they were priced way under what they believe they should be worth. This year, the company reissued 15,000 of those shares at a price of $12 per share. Prepare the journal entry for the reissuance of those shares.
c.) Stock Dividends Assume Company A reported a 9% stock dividend on their 40,000 outstanding shares (par value $1). The market value of the current shares is $19.00. Prepare the journal entry for this stock dividend with i. Small Stock Dividend (Less than 25%) ii. Large Stock Dividend (More than 25%)
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