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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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Answer:

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The Financial Plan collates each of the activities, resources, equipment and materials that are needed to achieve these objectives and specify time frames involved.

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8 0
3 years ago
In which of the following teams is leadership of most importance to coordinate the efforts of various teams in order to produce
Sauron [17]

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5 0
2 years ago
A 5-year corporate bond yields 9.70%. A 5-year municipal bond of equal risk yields 6.5%. Assume that the state tax rate is zero.
Roman55 [17]

Answer:

c. 32.99%

Explanation:

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Quick

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