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MrMuchimi
3 years ago
5

On February 22, Brett Corporation acquired 250 shares of its $3 par value common stock for $26 each. On March 15, the company re

sold 66 shares for $29 each. What is true of the entry for reselling the shares
Business
1 answer:
Alex3 years ago
5 0

Answer: Credit Additional Paid in Capital $198

Explanation:

Brett Corporation reissued the Treasury Stock at $29 which was $3 higher than the amount they had repurchased it for.

When stock is sold for a price higher or lower than they are worth, the balance goes to the Additional Paid-in Capital account. If it is sold higher, the balance is Credited to the Additional Paid-in Capital account and if it is sold for lower than it is worth, it is debited.

The Balance here is,

= $3 * 66 resold shares

= $198

This $198 will therefore be credited to the Additional Paid-in Capital account.

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The general journal entries that  Alicia Tax Services will make to record this transaction is :Debit Accounts payable, $690; credit Cash, $690.

Based on the information given since Alicia Tax Services paid the amount of  $690 to settle an account payable which means that the appropriate journal entry to record the transaction will be:

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Effective managers understand the importance of clear communication and hence use different channels to advance the<u> organizational communication strategy</u>

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<u></u>

Communication strategy refers to the plans for speaking statistics associated with a selected issue, event, situation, or audience. They function as the blueprints for speaking with the public, stakeholders, or maybe colleagues.

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Therefore, Effective managers understand the importance of clear communication and hence use different channels to advance the<u> organizational communication strategy</u>

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