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jeka94
3 years ago
9

On September 1, 2012, Valdez Company reacquired 16,000 shares of its $10 par value common stock for $15 per share. Valdez uses t

he cost method to account for treasury stock. The journal entry to record the reacquisition of the stock should debit
a. Treasury Stock for $160,000.
b. Common Stock for $160,000.
c. Common Stock for $160,000 and Paid-in Capital in Excess of Par for $60,000.
d. Treasury Stock for $240,000
Business
1 answer:
galben [10]3 years ago
7 0

Answer:

d. Treasury Stock for $240,000

Explanation:

The journal entry for re-acquisition of the stock under the cost method is shown below:

Treasury stock A/c Dr $240,000

    To Cash A/c                         $240,000

(Being the stock are reacquired for cash)

The $240,000 amount should be come from

= Number of shares × common stock per share

= 16,000 shares × $15

= $240,000

Since the stock is reacquired so we used the treasury stock account instead of the common stock account

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Which is the most common method for calculating credit card balances? A. Previous balance method, B. Adjusted balance method, C.
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The correct answer is C. Average daily balance method.

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3 years ago
Read 2 more answers
Maxwell Communications paid a dividend of $1.35 last year. Over the next 12 months, the dividend is expected to grow at 11 perce
PilotLPTM [1.2K]

Answer:

Current dividend paid (Do) = $1.35

Growth rate (g) = 11% = 0.11

Cost of equity (ke) = 24% = 0.24

Po = Do<u>(1 + g)</u>    

           Ke - g

Po = $1.35<u>(1 + 0.11)</u>

                 0.24 - 0.11

Po = <u>$1.4985</u>

            0.13

Po = $11.53                                                                                                                                                                                                                

Explanation:

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Answer:

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Profit($)

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