Genius Marketing Corporation reported the following stockholders equity at December 31 (adapted and in millions): Common stock..................................
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Common stock.................................. $ 225
Additional paid-in capital.................. 245
Retained earnings.............................. 2,149
Treasury stock................................... (621)
Total stockholders equity................. $1,998
During the next year, Genius Marketing purchased treasury stock at a cost of $29 million and resold treasury stock for $8 million (this treasury stock had cost Genius Marketing $2 million). Record the purchase and resale of Genius Marketing’s treasury stock. Overall, how much did stockholders equity increase or decrease as a result of the two treasury stock transactions?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Financial accounting
ISBN: 978-0136108863
8th Edition
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas
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