Suppose a company purchases 2,000 shares of its own $1 par value common stock for $16 per share. The company then resells 400 of these shares for $20 per share. Which of the following is recorded at the time of the resale? a. Credit Common Stock for $400. b. Credit Treasury Stock for $8,000. c. Credit Common Stock for $8,000. d. Credit Additional Paid-In Capital for $1,600.

Q: Oriole Company has issued 2,500 shares of common stock and 500 shares of preferred stock for a lump…

A: Common stock and Preference stock are two types of stock or shares that is being issued by the…

Q: A. Journalized the following transactions and prepare the Trail Balance: January, 2021 1 Pak Wheel…

A: Journal Entries Date Particulars…

Q: Elroy Corporation repurchased 3,600 shares of its own stock for $30 per share. The stock has a par…

A: Total amount of Treasury stock purchased = No. of stock Purchased * Amount per stock = 3600*$30 =…

Q: The Tornado Truck Body Company decides to repurchase 10,000 shares of its common stock on January…

A: The repurchase of treasury stock will be done at the amount paid to acquire it.

Q: Riverbed Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value…

A: Journal entries refer to the process of systematic documentation of the financial transactions of a…

Q: If Dakota Company issues 1,500 shares of $6 par common stock for $75,000, O Common Stock will be…

A: Lets understand the basics. Journal entry is required to make to record event and transaction that…

Q: Q. question 4

A: Prepare entry for reselling the shares.

Q: On March 31, 20x1, Budoy Co. received 10,000 stock rights from its investment in equity securities…

A: Theoretical value of rights=Market price-Subscription priceNumber of rights+1=P 80-P 604+1=P 4

Q: journal entry to record the issuance, how much should be recorded for Paid-in Capital in Excess of…

A: Given in the question:- 500 Common Stock * $10 per share= $5000 200 Preferred Stock * $ 20 per…

Q: Elroy Corporation repurchased 1,100 shares of its own stock for $55 per share. The stock has a par…

A: Treasury stock: Shares which are bought back by the company from the open market but not retired…

Q: When a company issues 36,000 shares of $4 par value common stock for $40 per share, the journal…

A: The journal entry of share issuance requires a debit to cash account and credit to share capital…

Q: Rinehart Corporation purchased from its stockholders 5,300 shares of its own previously issued stock…

A: Purchase price of each share = $275,600/5300                                                = $ 52

Q: Alt Corp. issues 5,000 shares of $10 par value common stock at $14 per share. When the transaction…

A: We have the following information: Alt Corporation issued Common Stock Common Stock Shares: 5,000 ;…

Q: Black Diamond Inc. issues 2,500 shares of $1 par valuecommon stock and 1,000 shares of $50 par value…

A: a. Prepare journal entries for issuance of common shares and preferred shares when market value of…

Q: 20) On October 1, Gregory Corporation purchased 4,000 shares of Treasury Stock for $22 per share. On…

A: Treasury stocks are issued when a company repurchases /buyback it's own shares.  When a company…

Q: If Dakota Company issues 1,500 shares of $6 par common stock for $75,000, O Common Stock will be…

A: Journal entry: A journal entry is used to record day-to-day transactions of the business by debiting…

Q: A. Journalized the following transactions and prepare the Trail Balance: January, 2021 1 Pak Wheel…

A: The following computations are done for Pak Wheel Corporation.

Q: Sneed Corporation issues 11,600 shares of $45 par preferred stock for cash at $67 per share. The…

A: Total par value of preferred stock issued = No. of shares issued x par value per share = 11,600…

Q: If Salman Company issues 16,000 shares of 10 par value common stock for 560,000 Paid-In Capital in…

A: Journal Entries can be defined as the record-keeping of the transactions of a company or an…

Q: Nash Group, Inc. issued 1,000 shares of $10 par common stock in Year 1 for $20 per share. Nash paid…

A: Treasury shares means the share which has been buy back by the company . It will be shown as…

Q: Assume that on February 12, First Union Co. purchases for cash 6,000 shares of Gilbert Co. stock at…

A: Total deividend received = No. of shares x Dividend per share = 6,000 shares x $0.42 per share =…

Q: Skysong Inc. issues  500 shares of $ 10 par value common stock and  100 shares of $ 100 par value…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Dave Matthew Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value…

A: Requirement a:   Pass necessary journal entry to record the issuance of common stock and preferred…

Q: If a corporation issues 6,000 shares of $5 par value common stock for $89,000, the journal entry…

A: Total par value of Common Stock = No. of Common Stock issued x par value per share = 6000 x $5 =…

Q: Smart Poly Machine issues 5,000 shares of 5%, $10 Par Value Preferred Stock for $10,000 cash,…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Evon, a limited liability company, issued 1,000,000 ordinary shares of 25 cents each at a price of…

A: We have the following information: Issued 1,000,000 ordinary shares of 25 cents each Issue $1.10…

Q: If Dakota Company issues 3,200 shares of $10 par common stock for $57,600, Oa. Cash will be debited…

A: Issue of shares Issue of Shares is the process by which companies pass on new shares to…

Q: Torres Inc. issues 40,000 shares of its $0.05 par value common stock for $70 per share. The journal…

A: To record issue of shares at a value more than par value, common stock will be credited by par value…

Q: The Sneed Corporation issues 11,100 shares of $54 par preferred stock for cash at $62 per share. The…

A: The company can raise funds from different sources like by issuing common stock, issuing preferred…

Q: he following accounts are shown on the statement of financial position of Phoenix Corporation…

A: Treasury stocks are, generally, those stocks that are bought back from their own shareholders. It…

Q: The Snow Corporation issues 9,900 shares of $54 par value preferred stock for cash at $62 per share.…

A: Whenever the preferred stock shares are issued at premium i.e above their par value, the par value…

Q: A corporation sold 13,500 shares of its $10 par value common stock at a cash price of $14 per share.…

A: Common Stock - Common Stock is the stock issued to the common shareholder's of the company.

Q: When a company issues 27,000 shares of $5 par value common stock for $50 per share, the journal…

A: When shares  are issued  Cash will be received. Thus cash should be debited.

Q: If Dakota Company issues 3,000 shares of $9 par common stock for $45,000, a.Paid-In Capital in…

A: Paid-up capital is that part of capital which is paid by the shareholders. The capital is raised…

Q: The charter of Zion Associates provides for the issuance of 100,000 shares of common stock. Assume…

A: The charter shows the authorized number of shares which in this case is 100000 shares. Subsequently…

Q: Liberward, Inc., sold and issued 1,000 shares for $15 per share. The book value of the shares was…

A: Shares are a mean of raising capital from the shareholders. Shares can be ordinary shares or…

Q: SHATT ALAREB CO. issues 1000 shares of $5 par value common stock and 500 shares of $50 par value…

A: Journal entry is record of financial transaction in the books of accounts maintained by an…

Q: A company issues 10,000 shares of $0.05 par value common stock for $25 per share. Which of the…

A: Definition: Common stock: Common stock is the instrument used by the company for raising funds from…

Q: Culver Corporation purchased from its stockholders 6,000 shares of its own previously issued stock…

A: Account Titles and Explanation Debit Credit Treasury Stock $306,000               Cash (6000*51)…

Q: The Snow Corporation issues 9,800 shares of $52 par value preferred stock for cash at $66 per share.…

A: Definition: Preferred stock: The stock that provides a fixed amount of return (dividend) to its…

Q: A corporation purchases 1,000 shares of its own common stock for $4,000 on February 13. On April 13,…

A: Treasury stocks are the stocks which the company buys back from the already issued  stocks  from the…

Q: Simon Corporation is authorized to issue 4,000,000 shares of P4 par value ordinary shares. The…

A: Stockholders' equity= Equity share capital + retained earnings - treasury shares  Or  All assets -…

Q: If Dakota Company issues 1,500 shares of $6 par common stock for $75,000, O Common Stock will be…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Nebraska Inc. issues 3,000 shares of common stock for $45,000. The stock has a stated value of $10…

A: When shares has no face value but are having a stated value then common stock account should be…

Q: If Kiner Company issues 1,000 shares of P5 par value common stock for P7o,000, the account Common…

A: There are three golden rules in accounting for recording the transaction : Debit what comes in ,…

Q: Please show all work and answers: 1. On January 1st, ZYX company purchased 1,000 shares of its…

A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…

Q: Sneed Corporation issues 11,700 shares of $55 par preferred stock for cash at $60 per share. The…

A: Stocks: Stocks are shares in the ownership of the company. It represents the capital raised by a…

Q: Taylor Corporation issues 20,000 shares of $50 par value preferred stock for cash at $90 per share.…

A: Issue price of preferred stock=Number of Shares×Issue price=20,000×$90=$1,800,000

Q: The Sneed Corporation issues 10,000 shares of $50 par preferred stock for cash at $62 per share. The…

A: Cash received = 10,000 shares x $62 = $620,000 Par value per share = $50 Paid in capital in excess…

Q: Mad City Corporation purchased from its stockholders 5,000 shares of its own previously issued stock…

A: Journal: Recording of a business transactions in a chronological order.

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.