Maverick Inc. has outstanding 10,000 shares of $10 par value common stock. On July 1, 2008, Maverick

Question:

Maverick Inc. has outstanding 10,000 shares of $10 par value common stock. On July 1, 2008, Maverick reacquired 100 shares at $85 per share. On September 1, Maverick reissued 60 shares at $90 per share. On November 1, Maverick reissued 40 shares at $83 per share. Prepare Maverick’s journal entries to record these transactions using the cost method.

Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...