The following selected transactions occurred for Corner Corporation Feb 1 Purchased 400 shares of the companys own common stock at $ 20 cash per share the stock is now held in treasury July 15 Issued 100 of the shares purchased on February 1 for $ 30 cash per share Sept 1 Issued 60 more of the shar...

Req 1 Assets Liabilities Stockholders Equity Feb 1 Cash 8000 Treasury Stock xSE 8000 Jul 15 Cash 300 ...

The following selected transactions occurred for Corner Corporation: Feb. 1 Purchased 400 shares of the companys own

Question:

The following selected transactions occurred for Corner Corporation:
Feb. 1 Purchased 400 shares of the company’s own at $ 20 cash per share; the stock is now held in treasury.
July 15 Issued 100 of the shares purchased on February 1 for $ 30 cash per share.
Sept. 1 Issued 60 more of the shares purchased on February 1 for $ 15 cash per share.
Required:
1. Show the effects of each transaction on the accounting equation.
2. Give the indicated journal entries for each of the transactions.
3. What impact does the purchase of treasury stock have on dividends paid?
4. What impact does the reissuance of treasury stock for an amount higher than the purchase price have on net income? Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...