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Ymorist [56]
3 years ago
6

At the end of the prior year, Atoka Industries reported the following account balances: Common Stock ($0.01 par value) $ 2,000 A

dditional Paid-in Capital 1,000,000 Retained Earnings 1,400,000 Treasury Stock 780,000 The treasury stock arose from a purchase of 10,000 shares of common stock for $78 per share. If the 10,000 treasury shares are issued for $50 per share in the current year, what journal entry must be prepared to record the transaction
Business
2 answers:
Yuliya22 [10]3 years ago
5 0

Answer and Explanation:

The Journal entry is shown below:-

Cash Dr, $500,000

(10,000 × $50)

Additional Paid in Capital Dr, $280,000    

        To Treasury Stock $780,000

($10,000 × $78)

(Being treasury stock is recorded)

Therefore If the shares from treasury stock are reissued at a cost that is lower than its cost, so the balance is debited to the additional paid-in capital.

Veronika [31]3 years ago
4 0

Answer and Explanation:

According to the scenario,  journal entry of the given data are as follow:-

Journal Entry  

Cash A/c (10,000 ×$50)    Dr.   $500,000

Additional paid in capital A/c    $280,000

     To Treasury stock A/c(10,000  × $78)     $780,000

(Being the reissue of treasury shares is recorded)

For recording this we debited the cash as it increased the cash and debited the additional paid in capital as it reduced the stockholder equity and credited the treasury stock

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Suppose you purchase five put contracts on Testaburger Co. The strike price is $45, and the premium is $3. If, at expiration, th
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3 years ago
Carter Corporation made sales of $ 825 million during 2018. Of this​ amount, Carter collected cash for $ 710 million. The​ compa
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Part (a) The net income of carter is $115 million.

Part (b) The closing cash balance at the end of year is $360.

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Part (a) Net Income Computation:

Sales                                     $825

Cost of goods sold             <u>(</u><u>$290</u><u>)</u>

Gross Profit                          $535

Other Expenses                  <u>(</u><u>$425</u><u>)</u>

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Inventory Invoices paid              ($350)

For  Everything                           <u>($290)</u>

Closing Cash balance                 $360

4 0
3 years ago
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