thank you so much Requlred Informatlon[The following Information applies to the questions displayed below.]On January 1, 2021, American Apparel Company Issues 1,000 shares of $1 par value common stock at $17 per share. OnMay 1, 2021, American Apparel decides to purchase 100 shares at a cost of $20 per share.Record the purchase of treasury stock. (If no entry Is requlred for a particular transactlon/event, select "No Journal Entry Requlred"In the first account fleld.)View transaction listJournal entry worksheetRecord the purchase of treasury stock.Note: Enter debits before credits.TransactionGeneral JournalDebitCredit1

Purchase cost of treasury stock = 100 shares x $20 = $2,000

On January 1, 2021, American Apparel Company Issues 1,000 shares of $1 par value common stock at $17 per share. On May 1, 2021, American Apparel decides to purchase 100 shares at a cost of $20 per share.

On January 1, 2021, American Apparel Company Issues 1,000 shares of $1 par value common stock at $17 per share. On May 1, 2021, American Apparel decides to purchase 100 shares at a cost of $20 per share.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 8MCQ

See similar textbooks

Related questions

Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…

A: No. of treasury shares after split = treasury shares x 5/1 = 50000 x 5/1 = 250,000 shares

Q: On January 1, 2021, Dreamy Company issued 30,000 shares of $2 par value common stock for $150,000.…

A: The journal entries are prepared to keep the record of day to day transactions of the business on…

Q: FAME Corporation is authorized to issue 1,000,000 shares of $1 par value common stock, and 200,000…

A: Answer the follwing questions true or false: 1. A total number of issued common shares at year-end…

Q: On January 1, 2019, Bain Company purchased 2,000 shares of On March 2, 2019 sold treasury stock for…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: On October 1, 2021, 500 shares of treasury stock were purchased at $40 per share. On January 15,…

A: The question endeavors to understand which of the four options would be a result of the transaction…

Q: On December 18, 2020, UNO Corporation issued 5,250 ordinary shares, par P30 for P58 per share. At…

A: Paid in capital in excess of par = Issue price per share - Par value per share = P58 per share - P30…

Q: On April 1, 2020, C'est Cheese issues 20,000 shares of 4%, $10 par, cumulative preferred stock $15…

A: Units of Activity Method The depreciation expense is determined by the asset's actual operational…

Q: At December 31,2018, ABC Company had 20,000 shares of P 20 par value treasury shares that were…

A: Treasury stock represents the value of own shares that have been purchased by the entity.

Q: On December 31, 2020, Dow Steel Corporation had 700,000 shares of common stock and 310,000 shares of…

A: Introduction: Earnings per share denotes the fraction of a company's profits that is available to…

Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…

A: No. of treasury shares after split = treasury shares x 5/1 = 50000 x 5/1 = 250,000 shares

Q: On December 31, 2020, Dow Steel Corporation had 600,000 shares of common stock and 300,000 shares of…

Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…

A: No. of treasury shares after split = treasury shares x 5/1 = 50000 x 5/1 = 250,000 shares

Q: On April 1, 2020, Giants Company issued 2,500 shares of its $10 par common stock and 5,000 shares of…

Q: The Corazon Corporation is authorized to issue 100,000 shares at P20 par ordinary shares. At the…

A: Capital Contributed = Common Stock + Additional Paid in Capital Common Stock refers to the capital…

Q: heridan Company issues 4,400 shares of restricted stock to its CFO, Dane Yaping, on January 1, 2020.…

A: Journal entries are recording of the transaction in the accounting journal in a chronological order.…

Q: Publisher Inc. has 1,000,000 shares of common stock authorized. In 2020, Publisher issued 400,000…

A: Organizations have the power to raise funds with different methods such as by issuing common stock,…

Q: Tweedie Company issues 10,000 shares of restricted stock to its CFO, Mary Tokar, on January 1, 2020.…

A: Journal Entry: It is a systematic record of a financial transaction of an organization recorded in…

Q: On January 1, 2021, Tonge Industries had outstanding 820,000 common shares ($1 par) that originally…

A: EPS is earnings per share it is calculated using the following formula : Basic EPS : Net income -…

Q: On December 31, 2020, the Frisbee Company had 262,000 shares of common stock issued and outstanding.…

A: Earnings per share indicate the profits per share of common stockholders. It can be calculated by…

Q: Sprinkle Inc. has outstanding 10,000 shares of $10 par value common stock. On July 1, 2020, Sprinkle…

A: Definition: Treasury stock: The shares which were reacquired or bought back by the company, but…

Q: On January 1, 2021, Tonge Industries had outstanding 440,000 common shares ($l par) that originally…

A: Compute the basic and diluted earnings per share for the year ended December 31, 2021: Compute the…

Q: Douglas Corporation had 120,000 shares of stock outstanding on January 1, 2020. On May 1, 2020,…

A: Months No. of months No. of shares No. of shares outstanding Calculation Weighted average shares…

Q: On March 1, 2020, Seokjin Corporation received subscription for 1,600 Preference Shares with P 300…

A: No. of shares available for subscription = Total authorized to issue - Preference Shares…

Q: FAME Corporation is authorized to issue 1,000,000 shares of $1 par value common stock, and 200,000…

A: Common shares can be defined as a type of security which gives the holder the ownership right in the…

Q: On January 1, 2021, Tonge Industries had outstanding 460,000 common shares ($1 par) that originally…

A: Numerator / Denominator = Earning per share Basic $ 550,000 / 463,000 =…

Q: On September 1, 2020, Valdez Company reacquired 30,000 shares of its $10 par value common stock for…

A: The question is related to repurchase of treasury stock under cost method. In the given question the…

Q: On January 1, 2021, Dreamy Company issued 30,000 shares of $2 par value common stock for $150,000.…

A: Treasury stock: Shares which are bought back by the company from the open market but not retired…

Q: The beginning of 2019, hard and Company had 210,000 shares of $10 par common stock outstanding.…

A: Stock dividend is a type of dividend which is provided to the shareholders. In this type,…

Q: Mask Company has 30,000 shares of $10 par value common stock authorized and 20,000 shares issued and…

A: a. Following are the journal entries for purchase and sale and the effect of treasury stock in…

Q: Tamarisk, Inc. is authorized to issue 2,250,000 shares of $1 par value common stock. During 2020,…

A: Shares bought back by the company are called treasury stock. Treasury stock is deducted from the…

Q: On July 1, 2020, Phoenix company offers to issue their accountant 800 common shares at their current…

A: Entry for expenses paid by cash: Debit Expense, Credit Cash Entry for issue of common shares: Debit…

Q: On December 31, 2020, Dow Steel Corporation had 610,000 shares of common stock and 31,000 shares of…

A: Date Particulars No. of shares 01/01-31/12 610000 * 12/12 610000 * 1.04 634400 28/02-31/12…

Q: On January 1, 2021, Tonge Industries had outstanding 540,000 common shares ($1 par) that originally…

A: Basic earnings per share: - Basic EPS measures how much a business earns per share without going…

Q: ABC Company had 80,000 ordinary shares outstanding in January 2020. The company distributed a 15%…

A: Shares reacquired by the company are entitled to a share split. So the 10,000 shares that are…

Q: At December 31,2018, ABC Company had 20,000 shares of P 20 par value treasury shares that were…

A: difference in repurchase price and issue price are transferred to additional paid in…

Q: Derrick Company issues 4,000 shares of restricted stock to its CFO, Dane Yaping, on January 1, 2020.…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…

A: No. of treasury shares after split = treasury shares x 5/1 = 50000 x 5/1 = 250,000 shares

Q: Manley Company repurchases 10,000 shares of its $0.10 par value common stock for $30 per share on…

A: Journal is a place where journal entries are recorded in the book keeping system before ledger…

Q: Mustang Corporation had 100,000 shares of $2 par value common stock outstanding. On December 31,…

A: The process of recording business transactions in the books of accounts for the first time is…

Q: anuary 1, 2019, ABC Corporation had 125,000 shares of its $2 par value ordinary shares outstanding.…

A: Solution: Weighted-average number of shares outstanding are the number of outstanding share which…

Q: The Corazon Corporation is authorized to issue 100,000 shares at P20 par ordinary shares. At the…

A: answer with calculations re as follows.

Q: On January 1, 2019, Metco Inc. reported 296,000 shares of $6 par value common stock as being issued…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Hideo Co. was organized on January 1, 2021, with 300,000 shares of common stock with a $6 par value…

A: Cost method of treasury stock is simple as it considers the cost that is paid to repurchase that…

Q: ayan Inc. has been authorized to issue 125,000 shares of P10 par ordinary shares. The following 2019…

A: A Company issues capital by issuing stocks of par value which can be issued at premium. By giving…

Q: The Corazon Corporation is authorized to issue 100,000 shares at P20 par ordinary shares. At the…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…

A: General Journal Debit Credit Cash [(50,000 shares * 5 *50%) * P10] P12,50,000…

Q: On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market…

A: No. of treasury shares after split = treasury shares x 5/1 = 50000 x 5/1 = 250,000 shares

Q: On January 1, 2021, Tonge Industries had outstanding 540,000 common shares ($1 par) that originally…

A: Earnings Per Share - Businesses all over the world exist to make money and increase the wealth of…

Q: Haystalk Company issues 4,000 shares of restricted stock to its CFO, Corn Needle, on January 1,…

A: Stockholder's equity includes the amount contributed by shareholders issued in the form of common…

Concept explainers

Emergency Fund

The emergency fund is an amount that is kept aside to meet financial emergencies such as medical expenses and debt settlements. Emergency funds reduce the burden on people during their hardships. People save small portions of their earnings or paychecks as emergency funds to meet financial emergencies. Emergency funds should be saved or invested in such a way that they must be easily liquidated during emergencies. The main purpose of an emergency fund is its availability when required.

Question

thank you so much

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Calculating the Number of Shares Issued Castalia Inc. issued shares of its $0.80 par value common stock on September 4, 2019, for $8 per share. The Additional Paid-In Capital-Common Stock account was credited for 5612,000 in the journal entry to record this transaction. Required: How many shares were issued on September 4, 2019?
Calculating the Number of Shares Issued Castanet Inc. issued shares of its $1. 50 par value common stock on November 9,2019, for $13 per share. In recording the issuance of the stock, Castanet credited the Additional Paid-In Capital- Common Stock account for $416,300. Required: How many shares were issued on November 9, 2019?
Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?
Subscriptions On August 3, 2019, the date of incorporation, Quinn Company accepts separate subscriptions for 1,000 shares of 100 par preferred stock at 104 per share and 9,000 shares of 110-par, no-stated-value common stock for 22 per sl1are. The subscription contracts require a 10% down payment, with the balance due by November 1, 2019. Shares are issued to each subscriber upon full payment. On November 1, Quinn received the remaining balances for the shares of preferred stock and common stock. Required: Prepare journal entries to record all the transactions related to: 1. the preferred stock 2. the common stock
Outstanding Stock Lars Corporation shows the following information in the stockholders equity section of its balance sheet: The par value of common stock is S5, and the total balance in the Common Stock account is $225,000. There are 13,000 shares of treasury stock. Required: What is the number of shares outstanding? Use the following information for Exercises 10-58 and 10-59: Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, S20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.
On January 1, 2020, Vaughn Manufacturing issued 15,000 shares of $4 par value common stock for $180,000. On March 1, 2020, the company purchased 3,800 shares of its common stock for $17 per share for the treasury. Journalize the stock transactions of Vaughn Manufacturing in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Jan. 1 March 1 Account Titles and Explanation Cash Common Stock Paid-in Capital in Excess of Par Value-Common Stock Treasury Stock Cash Debit |||| 64600 Credit 64600
Nash's Trading Post, LLC is authorized to issue 1,000,000 shares of $1 par value common stock. During 2020, the company has the following stock transactions. Jan. 15 Sept. 5 Dec. 6 Journalize the transactions for Nash's Trading Post, LLC. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Jan. 15 Issued 700,000 shares of stock at $5 per share. Purchased 20,000 shares of common stock for the treasury at $8 per share. Declared a $0.50 per share dividend to stockholders of record on December 20, payable January 3, 2021. Sept. 5 V Dec. 6 Account Titles and Explanation Cash Common Stock Paid-in Capital in Excess of Par Value-Common Stock Treasury Stock Cash Cash Dividends Dividends Payable Debit 160000 II Credit 160000
Native Corp. reports the following transactions for 2020: 1 (Click the icon to view the transactions.) Required. Prepare journal entries for the transactions. Explanations are not required. Transactions January 27: Sold 22,000 common shares for $5 per share. Journal Entry Jan. 27 Sold 22,000 common shares for $5 per share. Date Accounts Debit Credit Feb. 1 Sold 8,500 shares of $1.00, noncumulative, preferred shares for $75 Jan. 27 per share. Oct. 13 Declared a 10 percent stock dividend on the common shares. The current market price of the common shares is $7 per share. There are 87,000 common shares outstanding on October 13. 2020 Nov. 16 Distributed the stock dividend declared on October 13. Dec. 11 Declared the annual dividend required on the preferred shares and a $0.45 per share dividend on the common shares. There are 12,000 preferred shares outstanding at this time. February 1: Sold 6,500 shares of $1.00, noncumulative, preferred shares for $75 per share. Journal Entry Date…
Sheffield Inc. has outstanding 13,100 shares of $10 par value common stock. On July 1, 2020, Sheffield reacquired 113 shares at $88 per share. On September 1. Sheffield reissued 62 shares at $94 per share On November 1, Sheffield reissued 51 shares at $0 per share. Prepare Sheffield's journal entries to record these transactions using the cost method (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account ttles and enter O for the amounts) Date Account Titles and Explanation Debit Credit 11/1/20 |||| I
On July 1, 2020, Phoenix company offers to issue their accountant 800 common shares at their current market value of $12 per share, to equal the fair value of $9,600. The accountant accepts the offer of shares in exchange for accounting services. Record the journal entry for the issuance of shares. Select one: a. Debit Cash $9,600, Credit Common Shares $9,600 b. Debit Accounting Fees Expense $9,600, Credit Cash $9,600 c. Debit Accounting Fees Expense $9,600, Credit Common Shares $9,600 d. Debit Cash $9,600, Credit Service Revenue $9,600
Prepare the necessary journal entries for the following transactions: On April 5, 2021, Graham Company purchased 2,000 shares of its own $1 par value common stock (treasury stock) at a cost of $35 per share. On October 8, 2021, the company reissued 1,200 shares at a price of $37 per share. On November 20, 2021, the company reissued the remaining 800 shares at a price of $31 per share.
SHOW THE JOURNAL ENTRY OF A AND B! Your inquiries and investigation revealed the following transactions, which occurred in 2019: a. On January 15, the company reacquired 20, 000 ordinary shares (from the 2018 issue) at P22 per share and reverted them to treasury since it intends to reissue the same. b. On February 11, the company reissued 4,000 treasury shares at P28 per share. c. On March 5, the company reissued 6,000 treasury shares at P19 per share. d. On April 1, the company retired 5,000 treasury shares. e. On May 12, 20,000 preference shares were converted to ordinary shares. f. On June 9, 15,000 shares were subscribed for a total amount of P175,000 g. On July 4, a 2 for 1 share split was affected for the ordinary share. h. On August 8, the company reissued 3,000 treasury shares at P8 per share. i. The company issued 4,000 ordinary shares for P11 per share. j. The company registered an adjustments net income in 2019 at P830,000. SHOW THE JOURNAL ENTRY OF A AND B!