How is this displayed on balance sheet

Assignment Help Accounting Basics
Reference no: EM132087444

Question - The company repurchased stock (per agreements with early stage investors) for $290. The stock was not canceled but was held in the Treasury. This will give rise to a negative balance in the Treasury stock account equal to the cost of the buy-back.

a. Hint: Firms hold their own stock in a Treasury account (called Treasury Stock) when the have repurchased it but plan to reissue it in the future. A common reason that the repurchased stock is held in the Treasury Stock account is that it will be reissued as a part of equity compensation (in future transactions similar to #6 above). Treasury stock is a contra-equity account-it reduces the total Stockholders' Equity.

How is this displayed on Balance Sheet and Statement of Cash Flows?

Reference no: EM132087444

Questions Cloud

Difference between a paraphrase and direct quote : What is the difference between a paraphrase and direct quote? Are there any differences between the way that we reference a document or a direct quote?
Create an organization chart for the millennium wellness : The network will include an online backup service, and Internet access via a broadband connection with a local Internet service provider.
What should the balance in the opening balance : How would you enter opening balances into QuickBooks? What should the balance in the Opening Balance be at the end of the day
Analyze the effects of the global disaster : Analyze the effects of the global disaster on the financial statements of your chosen company using the financial information from your company
How is this displayed on balance sheet : The company repurchased stock (per agreements with early stage investors) for $290. How is this displayed on Balance Sheet and Statement of Cash Flows
Create some queries to extract insightful information : Your first two projects required you to manage databases and manipulate the data for the human resources and flight reservations systems.
What is the expressed argument you identi?ed : What is the expressed argument you identi?ed? What speci?c argument does the author make? What evidence does the author use to support his or her claims?
What is samantha adjusted basis in the new truck : Samantha Exchanges a truck used in her business with Phyllis for another truck, What is Samantha's adjusted basis in the new truck she receives
Compute the index of the middle element using a combination : Create a variable named h_median1 and assign to it the median (middle) value of the elements contained in row vector h. Utilize built-in function median().

Reviews

Write a Review

Accounting Basics Questions & Answers

  Discuss what is the additional cost per unit sold

the relationship is not proportional. Assume that Ms. Dunkley uses $38 of bags for every 52 software packages sold. What is the additional cost per unit sold

  Provide a clear recommendation to your client

A client comes to you thinking about starting a consulting business. Based on these advantages and disadvantages, provide a clear recommendation to your client

  Prepare the general journal entry to record the issuance

Prepare the general journal entry to record the issuance of the bonds on january 1.

  How many bookcases should be produced each week

Each coffeetable produced by Robert West Designers nets the firm a profit of$15. How many bookcases should be produced each week?

  Superior trade school allocates administrative cost to

superior trade school allocates administrative cost to respective departments based on the number of students enrolled

  Sophia and jacob are married and file a joint return the

1. sophia and jacob are married and file a joint return. the return for 2012 included a form 2106 for each of them. the

  Determine deer park net income

Deer Park, a public camping ground near the Lake Mead National Recreation Area, Determine Deer Park's net income for 2008

  What are the financial risks to healthcare organizations

Managing financial risk is an important responsibility of medical managers. Risk management is an important process to keep the finances of all healthcare.

  Find out total stockholders equity

On January 1, 2010, Gucci Brothers Inc. started the year with a $500,000 credit balance in retained earnings and a $608,000 balance in common stock. During 2010, the company earned net income of $109,000, paid a dividend of $14,200, and issued mor..

  Prepare journal entries for laplante to record the sale

Prepare journal entries for Laplante to record (1) the sale on October 2, 2017, (2) the granting of the allowance on October 16, 2017.

  What does it mean to have a fair division of something?

What does it mean to have a fair division of something?

  What is the prime cost per calculator for the fourth batch

What is the prime cost per calculator for the fourth batch. Estimate how many direct labour hours will be required to produce the fourth batch of calculators

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd