The XYZ Corporation sells 2 million shares of $3 par value common stock, for $18

Question

The XYZ Corporation sells 2 million shares of $3 par value common stock, for $18 per share. One year later, the corporation repurchases 170,000 shares at a market price of $11 a share. One year after that, it reissues the 170,000 shares at a market price of $26 a share. For each transaction, prepare the journal entry and show the effect on assets, liabilities and stockholders' equity. (Leave no cells blank - be certain to select "0" wherever required. Omit the "$" sign in your response.)

The XYZ Corporation sells 2 million shares of $3 par value common stock, for $18 per share. One year later, the corporation repurchases 170,000 shares at a market price of $11 a share. One year after that, it reissues the 170,000 shares at a market price of $26 a share. For each transaction, prepare the journal entry and show the effect on assets, liabilities and stockholders' equity. (Leave no cells blank - be certain to select "0" wherever required. Omit the "$" sign in your response.)

Explanation / Answer

Assets = CashStockholder's Equity = [Common Stock + Paid-in Capital in Excess of Par]Cash = $1,100Stockholder's Equity = [$1,000 + $100]

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