tion.com connect Intermediate Accounting 302: ACCT 302 01 Fall 2017 ACCOUNTING C
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tion.com connect Intermediate Accounting 302: ACCT 302 01 Fall 2017 ACCOUNTING Chapter 18 Hw Question 4 (of 25) 10.00 points Agee Storage issued 27 millon shares of its $1 par common stock at $12 per share several years ago. Last year, for the first time, Agee reacquired 1 million shares at $10 per share. Assuming that Agee retires shares it reacquires (restores their status to that of authorized but unissued shares), by what amount will Agee's total paid-in capital decline if a now reacquires 1 milion shares at $15 per share? (Enter your answer in millions (e, 10,000,000 should be entered as 10).) milion Check my workExplanation / Answer
4.
Common stock 1 million
Paid in capital 11 millions
To Paid in capital (repurchase) 2 millions
To cash 10 millions
Common stock 1 million
Paid in capital 11 millions
Paid in capital (repurchase) 2 millions
Retained earnings 1 million
To Cash 15 millions
Total paid in capital declne by 14 millions (15 millions - 1 million).
5.
journal entries:
January 23, 2013 Treasury stock (10 * $19) $190 millions
To cash $190 millions
September 3, 2013 Cash (2 * $20) $40 milions
To Treasury stock $38 millions
To paid in capital $2 millions
November 4, 2013 Cash $34 millions
Paid in capital $2 millions
Retained earnings $2 millions
To Treasury stock $38 millions.
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