Question
Knight Corp. holds 20,000 shares of its $10 par value common stock as treasury stock reacquired in Year 1 for $240,000. On December 12, Year3,
Knight Corp. holds 20,000 shares of its $10 par value common stock as treasury stock reacquired in Year 1 for $240,000. On December 12, Year3, Knight reissued all 20,000 shares for $380,000.
- Using the cost method of accounting for treasury shares, prepare the entry to reflect this transaction.
- What entry would be made if the stock were resold for $150,000?
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Financial Accounting
Authors: Anne Britton, Chris Waterston
5th edition
273719300, 273719304, 978-0273719304
