Ask Question
BusinessBusiness
5 April, 07:06

SprayCo Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On March 9 of the current year, SprayCo reacquired 19,100 shares of its common stock at $20 per share. On June 9, 13,700 of the reacquired shares were sold at $25 per share, and on November 13, 4,000 of the reacquired shares were sold at $21. Required:

a. Journalize the transactions of March 9, June 9, and November 13. Refer to the Chart of Accounts for exact wording of account titles.

b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year?

c. What is the balance in Treasury Stock on December 31 of the current year?

d. How will the balance in Treasury Stock be reported on the balance sheet?

+4
Answers (1)
  1. 5 April, 08:00
    0
    treasury stock 382,000 debit

    cash 382,000 credit

    cash 342,500 debit

    treasury stock 274,000 credit

    additional paid-in TS 68,500 credit

    cash 84,000 debit

    treasury stock 80,000 credit

    additional paid-in TS 4,000 credit

    additional paid-in TS 72,500

    Treasury Stock 28,000

    The Treasury Stock will be reported as a decrease to the equity.

    Explanation:

    19,100 shares x $20 per share = 382,000

    13,700 shares x $20 per share = 274,000

    13,700 shares x $25 per share = 342,500

    additional paid-in = 68,500

    4,000 shares x $21 per share = 84,000

    4,000 shares x $20 per share = (80,000)

    additional paid-in 4,000

    68,500 + 4,000 = 72,500 additional paid-in TS

    TS 382,000 - 274,000 - 80,000 = 28,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “SprayCo Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On March 9 of the current year, SprayCo ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Which type of rubric contains a rating scale? a. both types of rubrics b. general rubric c. specific rubric?
Answers (1)
The net present value: Multiple Choice decreases as the required rate of return increases. is equal to the initial investment when the internal rate of return is equal to the required return.
Answers (1)
Which of these sentences is always true for for a parallelogram?
Answers (1)
Because there are a significant number of "green-conscious" consumers, it is a legitimate market segment for many companies that have heretofore relied on more traditional segmentation such as demographics or psychographics. a. True b. False
Answers (1)
The calculation of diluted earnings per share assumes that stock options were exercised and that the proceeds were used to buy treasury stock at:A. The average market price for the reporting period. B. The market price at the end of the period. C.
Answers (1)
New Questions in Business
Which of the following actions will likely cause a project to fail? A) dedicating valuable team member time to identify risk events B) spending project funding to procure needed tools and spare parts C) unclear or conflicting stakeholder
Answers (1)
Mcgregor company allows customers to pay with credit cards. the credit card company charges mcgregor 2% of the sale. when a customer uses a credit card to pay mcgregor $300 for services provided, mcgregor would:
Answers (1)
Net worth is the difference between a firm's assets and its liabilities. a. True b. False
Answers (1)
Buyer Jim agreed to a 20-day window to get a survey done. A number of problems have occurred and after 20 days from the signed contract date, buyer Jim has yet to have a survey completed. What is now the status of the sales contract? a.
Answers (1)
Lawrence has worked in his career field for 20 years. one benefit of his experience over younger employees lies in
Answers (1)
Home » Business » SprayCo Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On March 9 of the current year, SprayCo reacquired 19,100 shares of its common stock at $20 per share.
Sign Up Forgot Password?