Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. abc company is authorized to issue 100,000 shares

ABC Company is authorized to issue 100,000 shares of its $10 par value common stock and...

70.2K

Verified Solution

Question

Accounting

ABC Company is authorized to issue 100,000 shares of its $10 parvalue common stock and as of February 1 had 25,000 shares issuedand outstanding. On March 1, ABC bought 1,000 of its shares for thetreasury at $25 each. Required—Prepare the journal entries that ABCshould have made to record the transactions described in each ofthe following independent scenarios: Scenario #1 (1) On March 11,ABC issued 100 of the treasury shares at $30 each. (2) On March 21,ABC issued 100 of the treasury shares at $22 each. Scenario #2 (1)On March 11, ABC issued 100 of the treasury shares at $26 each. (2)On March 21, ABC issued 100 of the treasury shares at $22 each.

Answer & Explanation Solved by verified expert
4.4 Ratings (646 Votes)
Entry on 1 Mar under both scenarios are optional and can be ignored Scenario 1 Date Accounts title Debit Credit Working 01Mar Treasury Stock 25000 1000 shares x 25 cost Cash 25000 1000 shares x 25 cost    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Document and Entity Information - USD ($)12 Months EndedFeb. 03, 2018Mar. 08, 2018...Document and...

Accounting
Q

The anticodon sequence of the tRNA carrying lysine into the ribosome is 3’-UUC-5’. Write down the...

Biology
Q

Chemotherapy is a commonly used treatment modality for cancer patients. One’s hope is that the treatment will...

Biology
Q

Discuss the physiology of balance

Medical Sciences
Q

Maternal mortality- complications of pregnancy

Medical Sciences
Q

MY Perform the given set operation Let U 1 2 3 4 5 6 7...

Basic Math
Q

Based on the degree of the polynomial f(x) given below, what is the maximum number...

Basic Math
Q

Use power series to solve the initial value problem Answer y 00 00 2 27...

Algebra
Q

Corporation has $20,000 of negative accumulated earnings and profits at the beginning of the year...

Accounting
Q

On January 1, 2017, Sheffield SA had Accounts Receivable 94,720 and Allowance for Doubtful Accounts...

Accounting
Q

Rosita Flores owns Rosita's Mexican Restaurant in Tempe, Arizona. Rosita's is an affordable restaurant near...

Accounting
Q

Providence Hospital generates monthly performance reports for each of its departments. The hospital must maintain...

Accounting