Ch. 11 Prob x c ezto.mheducation.com/hm.tpx Apps ? Bookmarks D ? Blackboard M Mc

Question

Ch. 11 Prob x c ezto.mheducation.com/hm.tpx Apps ? Bookmarks D ? Blackboard M McGraw-Hill Connect Pearson OM MACRO D Maple Just 11 Really Helpfu @GMU Account GMU Parking os Mason Mail Other bookmarks E11-13 Recording and Analyzing Treasury Stock Transactions LO11-3 Rock Bonom Gold Company recently repurchased 7 20 milion shares of its common stock for $49 per share. The intent of the repurchase was to Increase eamings par chare to be more in line wih competitors Required: 1. Determi e lhe impace or the stock epurchase on asseta la lines and stoc do ders equity egati e nmounts should be indicated by a minus ?gn. Enter your answers in whole dollars not in millions e 1,000,000 not 1.0). Assets Liablites 2. Prepare the journal entry to rocord the repurchase Ilf no entry is required for a transactionevent, seloct "No journal entry required" in the first account fiold. Enter your answors in whole dollars not in mins. 1,000,000 not 1.0.) View transaction list Journal entry worksheet Record the purchase of Treasury stock for $49 per share. Note: Enter debits before ?edrs Record entry Clear entry View gonecal journal References eBook & Resources Worksheet 6:50 PM O Type here to search 4/26/2018

Explanation / Answer

1. Impact on Asset Assets ($7200000*$40) -288000000 Cash balance will be reduced by 288000000 hence its impact on Overall decrease on Asset Balance Liabilities 0 Stockholders' equity -288000000 It will reduce from stockholder's equity hence shown as decrease on Stockholder's balance 2. Journal Entry Treasury stock 288000000          Cash 288000000

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