Recording: Treasury Stock vs. Direct Stock Retirement On December 31, the records for Lakers Inc....
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Recording: Treasury Stock vs Direct Stock Retirement On December the records for Lakers Inc. provided the following data on stockholders equity. Common stock, $ par, shares issued: $ Additional paidin capital on common stock, $ per share: $ Treasury stock, shares cost $ per share: $ On that date, the stockholders vote to retire all of the treasury stock immediately and to purchase for direct retirement another shares of common stock currently trading at $ per share. a Provide the journal entry to retire the shares of treasury stock. b Provide the journal entry for the purchase and immediate retirement of the shares of outstanding common stock c Assume instead for part b that the company holds the shares in the treasury rather than retiring immediately. Record the journal entry. d Determine the change in stockholders' equity after part b and then again after part c Note: Indicate a decrease with a negative sign.
Recording: Treasury Stock vs Direct Stock Retirement On December the records for Lakers Inc. provided the following data on stockholders equity. Common stock, $ par, shares issued: $ Additional paidin capital on common stock, $ per share: $ Treasury stock, shares cost $ per share: $ On that date, the stockholders vote to retire all of the treasury stock immediately and to purchase for direct retirement another shares of common stock currently trading at $ per share. a Provide the journal entry to retire the shares of treasury stock. b Provide the journal entry for the purchase and immediate retirement of the shares of outstanding common stock c Assume instead for part b that the company holds the shares in the treasury rather than retiring immediately. Record the journal entry. d Determine the change in stockholders' equity after part b and then again after part c Note: Indicate a decrease with a negative sign.
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