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Alex Ar [27]
3 years ago
12

On August 1, 2014, Amherst Company reacquired 4,000 shares of its $15 par value common stock for $18 per share. Amherst uses the

cost method to account for treasury stock. What journal entry should Amhurst make to record the acquisition of treasury stock?
Business
1 answer:
zloy xaker [14]3 years ago
7 0

Answer:

Using the cost method means that the stock is recorded at the price it cost to buy it back.

Journal entry is therefore:

Date                     Account Title                                       Debit                 Credit

Aug 1, 2014         Treasury Stock                                $72,000

                            Cash                                                                           $72,000

<u>Working:</u>

= 4,000 shares * 18

= $72,000

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Answer:

The Net Cash Flow is $9,300,000.

Explanation:

A statement of cash flows with amounts in thousands can be created to determine the Net Cash Flow as follows:

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Adjustments from Operating Activities            <u>    1,100  </u>

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Since the amount is in thousands, that implies that  the Net Cash Flow is $9,300,000.

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Gordon Industries has 6 percent coupon bonds outstanding with a face value of $1,000 and a market price of $959.21. The bonds pa
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Producer surplus equals a. Value to buyers - Costs of sellers. b. Amount received by sellers - Costs of sellers. c. Value to buy
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I hope my answer helps you

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