Betty DeRose, Inc. entered into the following transactions during 2006: a. Re-ac
ID: 2344478 • Letter: B
Question
Betty DeRose, Inc. entered into the following transactions during 2006:a. Re-acquired 1,000 shares of its $8 par value common stock by paying $15 per share
b. Re-issued 300 of the shares that were re-acquired in (a) for $12 per share
c. Re-issued 200 of the shares that were re-acquired in (a) for $19 per share
d. Re-issued 300 of the shares that were re-acquired in (a) for $14 per share
Calculate the balance in the paid-in capital - treasury account after all four transactions above
are recorded. Do not use decimals in your answer.
Explanation / Answer
a. debit: treasury stock 15,000 credit: cash 15,000 b. debit cash 3600 debit: retained earnings 900 credit: treasury stock 4500 c. Debit: cash 3800 credit treasury stock 3000 Credit: paid in capital, treasury stock 800 d. debit: cash 4200 debit: Paid in capital, treasury stock 300 credit: treasuy tock 4500 paid in capital treasury = 800 - 300 = 500 answer: $500
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.