Question
Here is another exercise: X Company had outstanding 50,000 shares of $20 stated value common stock, all issued at $24 per share, and had retained
Here is another exercise:
X Company had outstanding 50,000 shares of $20 stated value common stock, all issued at $24 per share, and had retained earnings of $800,000. The company reacquired 2,000 shares of its stock for cash at book value from the widow of a deceased stockholder.
a) Give the entry to record the reacquisition of the stock.
b) Give the entry to record the subsequent reissuance of this stock at $50 per share.
c) Give the entry required if the stock is instead reissued at $30 per share and there were no prior treasury stock transaction.
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