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 And Managerial Accounting
Authors: Jan R. Williams, Joseph V. Carcello, Mark S. Bettner, Sue Haka, Susan F. Haka
14th International Edition
0071101217, 9780071101219
