Question

At December 31, 2010, the balance sheet of Meca International included the following shareholders' equity accounts:

Required:
Assuming that Meca International views its share buybacks as treasury stock, record the appropriate journal entry for each of the following transactions:
1. On February 12, 2011, Meca reacquired 1 million common shares at $13 per share.
2. On June 9, 2012, Meca reacquired 2 million common shares at $10 per share.
3. On May 25, 2013, Meca sold 2 million treasury shares at $15 per share—determine cost as the weighted-average cost of treasury shares.
4. For the previous transaction, assume Meca determines the cost of treasury shares by the FIFO method.



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  • CreatedJuly 05, 2013
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