Question
At its date of incorporation, Sheridan Companyissued 105000 shares of its $10 par common stock at $11 per share. During the current year, Sheridanacquired 18200
At its date of incorporation, Sheridan Companyissued 105000 shares of its $10 par common stock at $11 per share. During the current year, Sheridanacquired 18200 shares of its common stock at a price of $16 per share and accounted for them by the cost method. Subsequently, these shares were reissued at a price of $12 per share. There have been no other issuances or acquisitions of its own common stock. What effect does the reissuance of the stock have on the following accounts? Multiple choice
|
| Retained Earnings |
| Additional Paid-in Capital |
| Decrease |
| No effect |
| No effect |
| No effect |
| Decrease |
| Decrease |
| No effect |
| Decrease |
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Financial Accounting Objective Questions And Explanations
Authors: Irvin N. Gleim
7th Edition
0917539664, 978-0917539664
