Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. Use only one letter for each element. You do not need to enter amounts.Increase = IDecrease = DNo Effect = NWheaton Company reissued 100 shares of treasury stock. The treasury stock had been purchased by Wheaton at $18 per share. The shares were reissued at a price of $20 per share.AssetsLiabilitiesEquityRevenuesExpensesNetIncomeCash Flow? ?????
What will be an ideal response?
(I) (N) (I) (N) (N) (N) (I)
When treasury stock is reissued at a price greater than its cost, assets (cash) increases and equity increases (that is, the treasury stock account decreases by the amount of the original cost and the paid-in capital from treasury stock account increases for the difference between the cash received and the original cost). It is reported as a cash inflow from financing activities.
You might also like to view...
Answer the following statement(s) true (T) or false (F)
1. The Securities and Exchange Commission is headed by 12 elected officials, known as commissioners. 2. The Securities and Exchange Commission has authority to impose disclosure requirements upon corporations that are offering securities to the public. 3. A securities offering to a limited number of shareholders may be exempt from the registration provisions of the Securities Act of 1933. 4. Any securities offered, sold, or delivered through any means of interstate commerce (including the U.S. Postal Service) are considered to be part of a private offering.
Which of the following is not an ancillary service provider?
a. International Freight Forwarders b. Non Vessel-Owning Common Carriers c. Export packer d. Ocean carrier
The ability to quickly react to local conditions is an advantage of home-replication business strategies
Indicate whether the statement is true or false
Erie Company began the accounting period with $27,000 in accounts receivable. The ending balance in accounts receivable was $10,000. If the credit sales during the period were $44,000, what is the amount of cash received from customers?
A. $27,000 B. $44,000 C. $61,000 D. $81,000