Question

Why are these wrong???

Required information PA11-1 Analyzing Accounting Equation Effects, Recording Journal Entries, and Preparing a Partial Balance Sheet Involving Stock Issuance and Purchase Transactions [LO 11-2] [The following information applies to the questions displayed below] Global Marine obtained a charter from the state in January that authorized 1,000,000 shares of common stock, $5 par value. During the first year, the company earned $400,000 of net income, declared no dividends, and the following selected transactions occurred in the order given: a. Issued 100,000 shares of the common stock at $55 cash per share. b. Reacquired 25,000 shares at $50 cash per share. c. Reissued 10,000 shares from treasury for $51 per share. d. Reissued 10,000 shares from treasury for $49 per share. PA11-1 Part 1 Required: 1. Indicate the account, amount, and direction of the effect on above transaction. (Enter any decreases to Assets, Liabilities and Stockholders' Equity with a minus sign.) Answer is complete but not entirely correct Stockholders' Equity Liabilities Assets Common Stock Cash 5,500,000 a. 550,000 Additional Paid-In Capital, Common Stock 4,950,000 1,250,000 1,250,000 X Treasury Stock Treasury Stock Additional Paid-In Capital, Treasury Stock Treasury Stock b. Cash 51,000 510,000 C. 459,000 Treasury Stock Additional Paid-In Capital, Treasury Stock d. 490,000 Cash 480,000 (10,000)

Answer 1

+Stockholders' Equity Liabilities Assets Common Stock (100000x$5 Par Value) Additional Paid In Capital - Cash (100000x$55) $ 5,500,000.00 $ 500,000.00 a $ 5,000,000.00 Common Stock Cash (25000x$50) Treasury Stock (25000x$50) $ (1,250,000.00) b $(1,250,000.00) Cash (10000x$51) Treasury Stock (10000x$50) $ Additional Paid In Capital - $ 510,000.00 500,000.00 c Treasury Stock 10,000.00 d Cash (10000x$49) Treasury Stock (10000x$49) Additional Paid In Capital - $ $ $ 490,000.00 500,000.00 Treasury Stock (10,000.00) Total Liabilities Total Stockholders' Equity$5,250,000.00 $5,250,000.00 Total Assets