MQuie 44 Stockholder\'s Equ x ezto.mheducation.com/hm.tpx?-0.1430303307635391 14

Question

MQuie 44 Stockholder's Equ x ezto.mheducation.com/hm.tpx?-0.1430303307635391 144988 connect z 44 Stockholder's Equlty Question 1 (of 10) On December 2, Coley Corp. reacquired 1500 shares of its $3 par value common stock for $22 each. On December 20, Coley Corp. relssued 1,100 shares for $15 each. Which of the following is correct regarding the journal entry for the relssued shares? O Credit Treasury Stock $16,500 O Debit Cash $22.500 O Credit Treasury Stock $24.200 O Credit Paid in Capital- Treasury Stock $13,200

Explanation / Answer

Credit Treasury Stock 24,200 Since when we reissue treasury stock we would have to credit treasury stock for the amount we acquired for 1,100 * 22 = 24,200 Entry Would be Journal Entries Particulars Dr Amt Cr Amt Cash A/C Dr          16,500.00 Additional Paid in capital            7,700.00 To Treasury Stock          24,200.00 Stockholders Equity increases since when we issue treasury stock equity is increases as shares are reissued A credit to additional paid in capital for 1,188,000 Particulars Dr Amt Cr Amt Cash A/C Dr(40*33000)    1,320,000.00 To Additional Paid in capital (36*33000)    1,188,000.00 To Common Stock (4*33000)        132,000.00 Q5   False Common stockholders are owners of the company. They are paid in the last. Preference Sh are paid before them. Q6 Outstanding common stock is the stock in the hands of the shareholders Q7 Par Value is legal capital per share of stock assigned when the corporation

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