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Why are these wrong??? Required information PA11-1 Analyzing Accounting Equation Effects, Recording Journal Entries, and Preparing a Partial Balance Sheet Involving Stock Issuance and Purchase
Why are these wrong???
Required information PA11-1 Analyzing Accounting Equation Effects, Recording Journal Entries, and Preparing a Partial Balance Sheet Involving Stock Issuance and Purchase Transactions [LO 11-2] [The following information applies to the questions displayed below] Global Marine obtained a charter from the state in January that authorized 1,000,000 shares of common stock, $5 par value. During the first year, the company earned $400,000 of net income, declared no dividends, and the following selected transactions occurred in the order given: a. Issued 100,000 shares of the common stock at $55 cash per share. b. Reacquired 25,000 shares at $50 cash per share. c. Reissued 10,000 shares from treasury for $51 per share. d. Reissued 10,000 shares from treasury for $49 per share. PA11-1 Part 1 Required: 1. Indicate the account, amount, and direction of the effect on above transaction. (Enter any decreases to Assets, Liabilities and Stockholders' Equity with a minus sign.) Answer is complete but not entirely correct Stockholders' Equity Liabilities Assets Common Stock Cash 5,500,000 a. 550,000 Additional Paid-In Capital, Common Stock 4,950,000 1,250,000 1,250,000 X Treasury Stock Treasury Stock Additional Paid-In Capital, Treasury Stock Treasury Stock b. Cash 51,000 510,000 C. 459,000 Treasury Stock Additional Paid-In Capital, Treasury Stock d. 490,000 Cash 480,000 (10,000)Step by Step Solution
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