Which of the following is true regarding the accounting for Treasury Stock? (Pages 579-581)

a. Treasury stock is reported on the balance sheet in the equity section.

b. The sale of Treasury Stock has no impact on the income statement

c. Treasury Stock represents a negative equity amount

d. All of these are true

13. A company issues 10,000 shares of $10 par value common stock for $50 per share. Make the entry to record this transaction. (Pages 577-578)

19. Panhandle Corporation was organized on January 3, 2015.

The firm was authorized to issue 100,000 shares of $5 par common stock.

During 2015 they had the following transactions:

Issued 30,000 shares of common stock at $7 per share

Issued 20,000 shares of common stock at $8 per share

Reported a net income of $100,

Paid dividends of $50,000.

Calculate the following (Pages 577-578):

A. Dollar amount in Common Stock

B. Dollar amount in Additional Paid in Capital

C. Dollar amount in Retained Earnings

Indicate what the effect is on the accounting equation - increase (I), decrease (D), or no effect (NE) for the following: (Pages 585 and 601)

total assets total liabilities total S/E

Issue common Stock

Purchase treasury stock

Declare cash dividend

Pay cash dividend