In Year 1, Rona Corp. issued 5,000 shares of $10 par value common stock for $100 per share. In Year 7, Rona reacquired 2,000 shares at $150 per share from the estate of one of its deceased officers and immediately canceled these 2,000 shares. Rona uses the cost method in accounting for its treasury stock transactions. […]
Pugh Co. reported the following in its statement of equity on January 1:Common stock, $5 par value, authorized 200,000 shares, issued 100,000 shares $ 500,000 Additional paid-in capital 1,500,000 Retained earnings 516,000 $2,516,000 Minus: Treasury stock, at cost, 5,000 shares (40,000) Total equity $2,476,000 The following events occurred during the year: May 1 — 1,000 shares of treasury stock were sold for […]
Ten thousand shares of $10 par value common stock were issued initially at $15 per share. Subsequently, 1,000 of these shares were purchased as treasury stock at $13 per share. The cost method of accounting for treasury stock is used. What is the effect of the purchase of the treasury stock on the amount reported […]
East Co. issued 2,000 shares of its $5 par common stock to Krannik as compensation for 1,000 hours of legal services performed. Krannik usually bills $200 per hour for legal services. On the grant date of the shares, the stock was trading on a public exchange at $160 per share. By what amount should the additional […]
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