Why are these wrong??? Required information PA11-1 Analyzing Accounting Equation Effects, Recording Journal...

50.1K

Verified Solution

Question

Accounting

Why are these wrong???

image

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 & Explanation Solved by verified expert
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