1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Tju [1.3M]
3 years ago
9

A corporation sold 1,000 shares of its $2.00 par value common stock for $10.00 per share and later repurchased 100 of those shar

es for $12.00 per share. Which of the following will be debited to record the repurchase of the 100 shares?A.Common Stock for $1,200B.Treasury Stock for $1,200C.Treasury Stock for $200D.Cash for $1,200
Business
1 answer:
boyakko [2]3 years ago
5 0

Answer:

Option B. Treasury Stock for $1,200

Explanation:

The reason is that when 1,000 shares which has $2 par value and were issued at $10 per share, the journal entry was:

Dr Cash Account $10,000

Cr       Common Stock $2,000

Cr       Paid In Capital   $8,000

But when 100 shares were repurchased at $12 per share, then the accounting treatment would be

Dr Treasury Stock $1,200

Cr         Cash Account $1,200

So the correct option is option B.

You might be interested in
Indicate whether the following events might cause stocks in general to change price, and whether they might cause Big Widget Cor
-BARSIC- [3]

Answer:

Check the explanation below

Explanation:

Inflation is systematic (Market) risk, it impacts all stocks

Results of company is unsystematic (Specific) risk, as they are as expected stock price wont have much impact

Economic growth is systematic (Market) risk, as it is inline with forecasts stock prices will be constant

Directors death is unsystematic (Specific) risk, stock price will go down

Taxation is systematic (Market) risk, as it is discussed from 6 month, stock price wont have much impact currently

8 0
3 years ago
1. What is the lowest balance during this period?
RSB [31]
Actually for this type of question simply take a picture
Yah and the and is use a calculater
4 0
3 years ago
A company had net sales of $660,000, total sales of $810,000, and an average accounts receivable of $78,000. Its accounts receiv
qwelly [4]
About 78,000 until the turn over
5 0
3 years ago
Dividends paid to common stockholders ______ be deducted from the payer's taxable income for tax purposes.
Grace [21]

Dividends paid to common stockholders cannot be deducted from the payer's taxable income for tax purposes.

<h3>What is Dividend Payments?</h3>

Dividends are paid only on outstanding shares of common stock. Since the payments are the distribution of a company's profits to its shareholders, dividend payments decrease both the cash and the shareholders' equity balance shown on the issuing corporation's balance sheet.

Since they are paid on each share, the amount of cash distributed to each shareholder is based on the amount of shares they own.

<h3>Are dividends paid to common stockholders?</h3>

Dividends are paid only on outstanding shares of common stock.

A common stock dividend is the dividend paid to common stock owners from the profits of the company. Like other dividends, the payout is in the form of either cash or stock. The law may regulate the size of the common stock dividend particularly when the payout is a cash distribution tantamount to a liquidation.

Learn more about Dividends on:

brainly.com/question/25845157

#SPJ4

3 0
1 year ago
Sequential product development has the advantage of not only being a team-oriented approach, but also of being faster in bringin
wariber [46]

Answer:

False

Explanation:

During a sequential product development, each department works to complete its stage before the process continues to the next department.

A team-based new product development approach is used to develop products faster and to be able to sell them faster. This approach does not require that each department finishes its stage before passing to the next one. Instead, several departments work together simultaneously.

6 0
2 years ago
Other questions:
  • Billy Mitchell is the head cashier for a clothing store that specializes in men’s silk suits. After losing big at the local dog
    6·1 answer
  • One test of evidence is "does the evidence come from unbiased sources?"
    6·1 answer
  • Todco planned to produce 3,000 units of its single product, Teragram, during November. The standard specifications for one unit
    6·1 answer
  • At the beginning of the period, the Assembly Department budgeted direct labor of $110,000, direct materials of $170,000, and fix
    6·1 answer
  • Countries around the world specialize production, and trade with other countries based upon
    7·1 answer
  • What is a plane?? i need help
    10·2 answers
  • In the former Soviet Union, the quantities of output and prices to be charged by key firms were determined by
    7·1 answer
  • Over time, consumers have less of a need for a broad product offering. How does this shift in preferences alter the desirability
    10·1 answer
  • VANILLA SWAPS Cleveland Insurance Company has just negotiated a three-year plain vanilla swap in which it will exchange fixed pa
    13·1 answer
  • According to pmi’s agile’s practice guide, which roles are considered appropriate agile roles?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!