E11-8 Recording Treasury Stock Transactions and Analyzing Their Impact [LO 11-2,

Question

E11-8 Recording Treasury Stock Transactions and Analyzing Their Impact [LO 11-2, LO 11-3]

Chapter 11 HW Instructions I help Questions 19-22 (of 29) > Save & Exit Submit E11-8 Recording Treasury Stock Transactions and Analyzing Their Impact LO 11-2, LO 11-3] The folowing information appiies to the questions displayed below. The following selected transactions occurred for Coner Corporation: Purchased 510 shares of the company's own common stock at $31 cash per share; the stock is now held in treasury. Feb. 1 July 15 Issued 155 of the shares purchased on February 1 for $41 cash per share. Sept. Issued 115 more of the shares purchased on February 1 for $26 cash per share. Section Break E11-8 Recording Treasury Stock Transactions and Analyzing Thelr Impact [LO 11-2, LO 11-3] Required Information 0.37 points E11-8 Part1 Required: 1. Indicating the account, amount, and direction of the effect for the above transactions. (Enter any decreases to account balances with a minus sign.) Assets Liabilities Stockholders' Equity Feb. 1

Explanation / Answer

1.

2.

3. Dividends are not paid on treasury stock. Therefore, the total amount of dividends paid is lesser when treasury stock is purchased.

4. The reissuance of treasury stock for more or less than its original repurchase cost does not affect net income. The transaction affects only stockholders' equity accounts.

Assets = Liabilities + Stockholders' Equity Feb. 1 Cash -15810 Treasury stock -15810 Jul. 15 Cash 6355 Treasury stock 4805 Paid-in capital-Treasury stock 1550 Sep. 1 Cash 2990 Paid-in capital-Treasury stock -575 Treasury stock 3565

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