Acct241

Ray Hot Corporation has retained you as a consultant on accounting policios and procedures. During 2019, the company engaged in a number of treasury stock transa foreseen an opportunity to report its treasury stock as an asset and to recognize a profit in trading its own stock. The transactions were as follows: 1. Reacquired 100 shares of its $10 par common stock at $20 per share. The shares had originally been issued at $23 per share. 2. Peacquired 150 shares of its $10 par common stock at $24 per share. The shares had originally been issued at $23 per share. 3. Reacquired 50 shares of is $100 par proferred stock at $140 per share. The shares had originally been issued at $170 per share. 4. Sold all common treasury shares heid at $25 per share. 5. Reacquired 150 shares of its $100 par preferred stock at $130 per share. The shares had originally been issued at $170 per share. 6. Petired all preterred shares held in the treasury. Aequired: 1. Next Level is the corporafion correct in assuming that its treasury stock is an asset and that if can recognize a profit or gain from its treasury stock transactions? Explain. 2. Next Level Prepare an analysis of treasury stock accounting for Mr, Aobert Aichter, the controller. This analysis should contain proper joumal entries for each of the treasury stock transactions occurring during 2019, prepared using the cost method discussed in the chapter. 3. Next Level Conclude the analysis by discussing how "gains" on treasury stock are reporfed and how treasury stock is reported on a corporation's balance sheet. Instructions \begin{tabular}{|l|l|l|l|l|} \hline Genaral doumal & & & \\ \hline \end{tabular} a