Question
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
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
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