When a firm uses the par value method to account for treasury shares, ________________. The par value method requires specific identification of the date and initial proceeds of the shares repurchased, which is why firms seldom use this method
a. the accountant debits the Treasury Stock—Common account for the par value of the repurchased shares, debits Additional Paid-In Capital for the difference between the original issue price of the shares and par value, and plugs Retained Earnings for any difference between the repurchase price and the original issue price.
b. the accountant debits the Common Stock account for the par value of the repurchased shares, debits Additional Paid-In Capital for the difference between the original issue price of the shares and par value, and plugs Retained Earnings for any difference between the repurchase price and the original issue price.
c. the accountant debits the Common Stock account for the par value of the repurchased shares, credits Additional Paid-In Capital for the difference between the original issue price of the shares and par value, and plugs Retained Earnings for any difference between the repurchase price and the original issue price.
d. the accountant debits the Retained Earnings account for the par value of the repurchased shares, credits Additional Paid-In Capital for the difference between the original issue price of the shares and par value, and plugs Common Stock account for any difference between the repurchase price and the original issue price.
e. the accountant debits the Retained Earnings account for the par value of the repurchased shares, debits Additional Paid-In Capital for the difference between the original issue price of the shares and par value, and plugs Common Stock account for any difference between the repurchase price and the original issue price.
A
You might also like to view...
Linguistic translation of a website alone can capture cultural sensitivities.
Answer the following statement true (T) or false (F)
An exogenous construct is represented in an structural path model as a box with one-headed arrows going into it
Indicate whether the statement is true or false
Hyde Company traded in an old machine with a book value of $15,000 on a new machine. The exchange did not have commercial substance. The new machine, which had a cash price of $75,000, was purchased for $64,000 cash plus the old machine. Hyde should record the cost of the new machine as
a. $64,000. b. $71,000. c. $75,000. d. $79,000.
Hallie has a tendency to be egocentric. She follows the rules of her company only to avoid punishment and not to gain respect. When making decisions, she always focuses on what immediate benefits she will gain from an alternative
Which of the following stages of ethical development is illustrated in the scenario? a. Preconventional morality b. Postconventional morality c. Conventional morality d. Ethnocentric morality