8. Prost Products has excelled onpast treasury stock transactions, selling the s

Question

8. Prost Products has excelled onpast treasury stock transactions, selling the stock at above costresulting in a balance ofS1,250in Paid in Capital from Treasury Stock account. Currently, the company is holding 460 shares ofits $2 par-value common stock, reacquired for $2,000. If the stock is reissued for S500, what joumal entry will the company's accountant make? Cash Cash Loss on Treasury Stock Cash Paid-in Capital from Treasury Stock Cash Paid-in Capital from Treasury Stock 500 Treasury Stock 500 500 1,500 Treasury Stock 2,000 500 1,500 Treasury Stock 2,000 500 1,250 250 d. Retained Eamings Treasury Stock 2,000 9· The following journal entry was found in the accountingrecords of the Sullivan Corp Retained Eamings 10,000 Dividends payable 10,000 On what date would the entry have beenmade? a. Date of declaration. Date ofrecord. Ex-dividend date Date ofpayment. C. d.

Explanation / Answer

8) Option [d] Cash 500 Paid in capital from treasury stock 1250 Retained earnings 250 Treasury stock 2000 9) Option [a] Date of declaration

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