As you can see here on the bottom right of this question; it asks: Shares sold at $10 per share
On the right side where it says Treasury stock; shouldn't the the entries look like this instead:
Dr. Cash 10
Cr. Treasury stock 10
Why is share repurchases debited by 2 and Retained Earnings debited by 1.
Homework Answers
Why is share repurchases debited by 2 and Retained Earnings debited by 1.
Ans.
Because loss made on resale $3 (13-10)
adjusted to the extent available in share repurchase credit balance i.e, $2 and balance $1 set off from retained earnings.
[$ in million]
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As you can see here on the bottom right of this question; it
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Question 5
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Can Someone Check my journal entries?
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Intermediate Accounting by authors: Spiceland, Nelson, and
Thomas. Ch.18 P-2. Question #1-b.-b.) (the part that says its
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credit Treasury Stock by that much? Where do they get 20,000,000
from and how did they get share repurchase of 4,000,000? I
understand how cash is debited by 24,000,000. Please explain in
detail; THIS QUESTION IS NOT TOO LONG!
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