Question
Buffalo Butter Co. had 40,000 shares of $4 par value common stock outstanding on January 1. On January 20, the company purchased 4,000 of its
Buffalo Butter Co. had 40,000 shares of $4 par value common stock outstanding on January 1. On January 20, the company purchased 4,000 of its stock for $16 per share. On July 3, the company reissued 2,000 of the shares at $20 per share. Buffalo Butter uses the cost method to account for its treasury stock.
What journal entry will record the purchase of the stock on January 20?
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Financial Accounting
Authors: Bev Vickerstaff, Parminder Johal
1st Edition
1444170414, 978-1444170412
