ock Bottom Gold Company recently repurchased 7.18 million shares of its common s

Question

ock Bottom Gold Company recently repurchased 7.18 million shares of its common stock for $47 per share. The intent of the repurchase was to increase earnings per share to be more in line with competitors. Réquired: 1. Determine the impact of the stock repurchase on assets, liabilities, and stockholders equity. (Negative amounts should be indicated by a minus sign. Enter your answers in whole dollars not in millions (i.e., 1,000,000 not 1.0).) Assets Liabilities Stockholders' equity 2. Prepare the journal entry to record the repurchase. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars not in millions (i.e., 1,000,000 not 1.0).) View transaction list Journal entry worksheet Record the purchase of Treasury stock for $47 per share. Note: Enter debits before credits Transacti General Journal Debit

Explanation / Answer

(7.18*1000000*47)

***End of Answer***

Impact of stock repurchase on Assets -337460000 Liabilities 0 Stockholders equity -337460000 Journal Entry 1 Share capital A/c ___Dr 337460000    To Bank A/c 337460000

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