On January 1, 2019, Metco Inc. reported 296,000 shares of $6 par value common stock as being issued and outstanding. On March 24, 2019, Metco Inc. purchased for its treasury 2,400 shares of its common stock at a price of $39.00 per share. On August 19, 2019, 710 of these treasury shares were sold for $45.00 per share. Metco's directors declared cash dividends of $0.30 per share during the second quarter and again during the fourth quarter, payable on June 30, 2019, and December 31, 2019, respectively. A 4% stock dividend was issued at the end of the year. There were no other transactions affecting common stock during the year. a-2. Prepare the journal entry for the treasury stock purchase on March 24, 2019.
On January 1, 2019, Metco Inc. reported 296,000 shares of $6 par value common stock as being issued and outstanding. On March 24, 2019, Metco Inc. purchased for its treasury 2,400 shares of its common stock at a price of $39.00 per share. On August 19, 2019, 710 of these treasury shares were sold for $45.00 per share. Metco's directors declared cash dividends of $0.30 per share during the second quarter and again during the fourth quarter, payable on June 30, 2019, and December 31, 2019, respectively. A 4% stock dividend was issued at the end of the year. There were no other transactions affecting common stock during the year. a-2. Prepare the journal entry for the treasury stock purchase on March 24, 2019.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 3P: On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a...
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On January 1, 2019, Metco Inc. reported 296,000 shares of $6 par value common stock as being issued and outstanding. On March 24, 2019, Metco Inc. purchased for its treasury 2,400 shares of its common stock at a price of $39.00 per share. On August 19, 2019, 710 of these treasury shares were sold for $45.00 per share. Metco's directors declared cash dividends of $0.30 per share during the second quarter and again during the fourth quarter, payable on June 30, 2019, and December 31, 2019, respectively. A 4% stock dividend was issued at the end of the year. There were no other transactions affecting common stock during the year.
a-2. Prepare the journal entry for the treasury stock purchase on March 24, 2019.
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