Answer:
For question (31) $ 6000 (32) The net impact on retained earning is 1600 (Which is a negative
Explanation:
Question 31
No. Rate Value
Purchase of Treasury Stock 1000 15 15000
Less: Sold on 5/23/14 200 15 3000
Less: Sold on 6/19/14 400 15 6000
Net remaining value 6000
Note: to calculate the closing value of treasury stock, rate of selling stock need to be taken same as of date of purchase.
For question 31 the answer is $ 6000
Question 32
Impact on retained earning on first sale
No. Rate Value
Sale VALUE 200 17 3400
Less: Purchase of Treasury Stock 200 15 3000
Credit Retained earning 400
Impact on retained earning on second sale
No. Rate Value
Sale VALUE 400 10 4000
Less: Purchase of Treasury Stock 400 15 6000
Debit Retained earning -2000
Net Impact on retained earning 1600 (Negative i.e. Debit)
Therefore the remaining balance in the treasury stock account be after all of the above transactions have been recorded is $6000
Note: Kindly find an attached copy of the complete question to this solution
