FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Please answer all parts completely and correctly with explanation computation formula steps answer in text no copy paste show explanation and computation clearly for numbers provide full working for all steps with explanation answer all parts in text form
Required information
[The following information applies to the questions displayed below.]
The following selected transactions occurred for Corner Corporation:
February 1 Purchased 480 shares of the company's own common stock at $28 cash per
share; the stock is now held in treasury.
July 15 Issued 140 of the shares purchased on February 1 for $38 cash per share.
September 1 Issued 100 more of the shares purchased on February 1 for $23 cash per
share.
2. Prepare journal entries for each of the transactions. (If no entry is required for a transaction/event, select "
Journal Entry Required" in the first account field.)
Required:
1. Indicate the account, amount, and direction of the effect for the above transactions. (Enter any decreases to account balances with
a minus sign.)
Assets
February 1 Accumulated Other Comprehensive Income
July 15
July 15
September 1
September 1
Liabilities
Dividends
Therefore, the total amount of
+
3. What impact does the purchase of treasury stock have on dividends paid?
paid on treasury stock.
paid is
Stockholders' Equity
when treasury stock is purchased.
4. What impact does the reissuance of treasury stock for an amount higher than the purchase price have on net
income?
The reissuance of treasury stock for more or less than its original repurchase cost
affect net income. The transaction affects only
accounts.
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Transcribed Image Text:Required information [The following information applies to the questions displayed below.] The following selected transactions occurred for Corner Corporation: February 1 Purchased 480 shares of the company's own common stock at $28 cash per share; the stock is now held in treasury. July 15 Issued 140 of the shares purchased on February 1 for $38 cash per share. September 1 Issued 100 more of the shares purchased on February 1 for $23 cash per share. 2. Prepare journal entries for each of the transactions. (If no entry is required for a transaction/event, select " Journal Entry Required" in the first account field.) Required: 1. Indicate the account, amount, and direction of the effect for the above transactions. (Enter any decreases to account balances with a minus sign.) Assets February 1 Accumulated Other Comprehensive Income July 15 July 15 September 1 September 1 Liabilities Dividends Therefore, the total amount of + 3. What impact does the purchase of treasury stock have on dividends paid? paid on treasury stock. paid is Stockholders' Equity when treasury stock is purchased. 4. What impact does the reissuance of treasury stock for an amount higher than the purchase price have on net income? The reissuance of treasury stock for more or less than its original repurchase cost affect net income. The transaction affects only accounts.
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