Ray Holt Corporation has retained you as a consultant on accounting policies and procedures. During 2019,...

Transcribed Image Text:

Ray Holt Corporation has retained you as a consultant on accounting policies and procedures. During 2019, the company engaged in a number of treasury stock transactions, having foreseen an opportunity to report its treasury stock as an asset and to recognize a profit in trading its own stock. The transactions were as follows: 1. Reacquired 105 shares of its $10 par common stock at $18 per share. The shares had originally been issued at $20 per share. 2. Reacquired 160 shares of its $10 par common stock at $23 per share. The shares had originally been issued at $20 per share. 3. Reacquired 60 shares of its $100 par preferred stock at $135 per share. The shares had originally been issued at $189 per share. 4. Sold all common treasury shares held at $25 per share. 5. Reacquired 150 shares of its $100 par preferred stock at $130 per share. The shares had originally been issued at $189 per share. 6. Retired all preferred shares held in the treasury. Ray Holt Corporation has retained you as a consultant on accounting policies and procedures. During 2019, the company engaged in a number of treasury stock transactions, having foreseen an opportunity to report its treasury stock as an asset and to recognize a profit in trading its own stock. The transactions were as follows: 1. Reacquired 105 shares of its $10 par common stock at $18 per share. The shares had originally been issued at $20 per share. 2. Reacquired 160 shares of its $10 par common stock at $23 per share. The shares had originally been issued at $20 per share. 3. Reacquired 60 shares of its $100 par preferred stock at $135 per share. The shares had originally been issued at $189 per share. 4. Sold all common treasury shares held at $25 per share. 5. Reacquired 150 shares of its $100 par preferred stock at $130 per share. The shares had originally been issued at $189 per share. 6. Retired all preferred shares held in the treasury.

Answer rating: 100% (QA)

No Description Debit Credit 1 Treasury stock common 1890 Cash 105 x 18 1... View the full answer