Baxter Inc. buys as treasury stock 2,000 shares of its own common stock at $20 per share.
Question:
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Step by Step Answer:
The purchase of 2000 shares of treasur...View the full answer
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1133161646
7th Edition
Authors: Gary A. Porter, Curtis L. Norton
Related Video
Treasury stock refers to shares of a company\'s own stock that the company has bought back from its shareholders and now holds as a form of asset on its balance sheet. When a company buys back its own stock, it reduces the number of outstanding shares in the market, which can potentially increase the value of the remaining shares. Treasury stock can be acquired through a variety of methods, such as open market purchases, negotiated transactions, or as a result of converting convertible securities. Companies may buy back their own shares for a number of reasons, including to return capital to shareholders, to signal confidence in the company\'s future, or to use the shares for employee stock option plans. While treasury stock does not pay dividends, it can be reissued by the company at a later time, which could dilute the value of the remaining shares. Companies are required to report their treasury stock holdings in their financial statements.
Students also viewed these Managerial Accounting questions
-
Shown below is selected information from the financial records of Merris Corporation as of December 31, 2019: Inventory $165,000 Cash purchase of equipment $29,000 Cash collected fram customers...
-
The statement of cash flows classifies each transaction as an operating activity, an investing activity or a financing activity. Operating activities are the types of activities the company performs...
-
How does the statement of cash flows under GASB standards differ from the statement of cash flows under FASB standards?
-
In terms of the dielectric constant K, what happens to the electric flux through the Gaussian surface shown in Fig. 24.22 when the dielectric is inserted into the previously empty space between the...
-
On March 25, 2016, Parscale Company purchases the rights to a mineral interest for $8 million. At that time, the remaining recoverable units in the mineral interest are estimated to be 500,000 tons....
-
A restaurant has fixed costs of $ 1 3 2 . 5 0 per day and an average unit cost of $ 4 . 7 5 for each meal served. If a typical meal costs $ 6 , how many customers must eat at the restaurant each day...
-
A sketch of the arithmetic mean radius blade sections of an axial-flow water turbine stage is shown in Fig. P12.48. The rotor speed is \(1500 \mathrm{rpm}\). (a) Sketch and label velocity triangles...
-
Wilkins Manufacturing has annual sales of $4 million and a gross profit margin of 40%. Its end-of-quarter inventories are Quarter Inventory 1 ........ $ 400,000 2 ........ 800,000 3 ...........
-
What is the role of cross-functional teams in TPM, and how do they contribute to the success of TPM initiatives? Discuss the importance of collaboration between production, maintenance, and...
-
Which life cycle model would you follow for developing software for each of the following applications? Mention the reasons behind your choice of a particular life cycle model. Clearly Justify your...
-
Jackson Company prepays the rent on various office facilities. The beginning balance in Prepaid Rent was $9,600, and the ending balance was $7,300. The income statement reports Rent Expense of...
-
Duke Corp. sold a delivery truck for $9,000. Its original cost was $25,000, and the book value at the time of the sale was $11,000. How does the transaction to record the sale appear on a statement...
-
1. Vincent Hzu is the sole owner of a successful chain of Hakka Indian Chinese restaurants, Heavenly Hakka Inc., in Canada. Vincent (through Heavenly Hakka) and his two friends, Ibrahim Khan and...
-
Humans abuse the oceans. It is predicted that by 2050, overfishing, dumping waste, and heat from greenhouse-gas emissions will have destroyed most of the coral reefs and resulted in the oceans...
-
San Francisco led the movement to ban plastic shopping bags and is now proposing to ensure people have access to safe high-quality tap water and ban bottled water. A supporter of the ban says The...
-
a. Thinking about competition in game consoles as a game, describe the firms strategies. b. What, based on the information provided, turned out to be the equilibrium of the game? Sony, Microsoft, and...
-
NATO is a 28-nation defense alliance that regards an attack on one member as an attack on every member. To provide the agreed level of mutual support, NATO members commit to spending at least 2...
-
With no public health insurance market, how many families buy insurance, what is the premium, and is the coverage efficient? Use the following figure, which shows the marginal benefit from health...
-
In 2002 the United States imposed tariffs on steel imports, which are an input in a large number and variety of U.S. industries. Explain why political lobbying to eliminate these tariffs is more...
-
Audrey purchases a riding lawnmower using a 2-year, no-interest deferred payment plan at Lawn Depot for x dollars. There was a down payment of d dollars and a monthly payment of m dollars. Express...
-
Can you think of two examples of assets that may be classified as non-current assets for an insurance business?
-
Robert is studying for the next accounting examination. He asks your help on two questions: (a) What is salvage value ? (b) Is salvage value used in determining periodic depreciation under each...
-
Robert is studying for the next accounting examination. He asks your help on two questions: (a) What is salvage value ? (b) Is salvage value used in determining periodic depreciation under each...
-
Contrast the straight-line method and the units-of-activity method as to (a) Useful life, and (b) The pattern of periodic depreciation over useful life.
-
The Power of Trade and Comparative Advantage: Work It Out 3 ? Here's another specialization and exchange problem. This problem is wholly made-up, ? so that you won't be able to use your intuition...
-
Government spending as a fiscal policy tool is used to: A) ?Decrease the national debt B) ?Directly stimulate economic activity by increasing demand C) ?Reduce inflation D) ?Lower interest rates
-
Automobile demand has fallen during a recent recession, and Ana has been laid off from her job on the assembly line. Rajiv recently lost his job as a waiter at a local restaurant. A recent increase...
Study smarter with the SolutionInn App