Question
On September 1, 2020, Alder Company reacquired 40,000 shares of its $10 par value common stock for $18 per share. Alder uses the cost method
On September 1, 2020, Alder Company reacquired 40,000 shares of its $10 par value common stock for $18 per share. Alder uses the cost method to account for treasury stock. Alder resold 20,000 shares from the September 1 purchase for $20 per share on September 15. Alder resold 10,000 shares from the September 1 purchase for $15 per share on October 1. Finally, Alder resold the remaining 10,000 shares from the September 1 purchase for $16 per share on November 1. 12) What is the journal entry for the reacquisition of stock on September 1? 13) What is the journal entry for the sale of stock on September 15? 14) What is the journal entry for the sale of stock on October 1? 15) What is the journal entry for the sale of stock on November 1 ?
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Financial and Managerial Accounting Information for Decisions
Authors: John Wild, Ken Shaw, Barbara Chiappetta
5th edition
978-1259317552, 1259317552, 978-0078025600, 78025605, 978-1259335013, 1259335011, 978-1259347641
