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Rock Bottom Gold Company recently repurchased 7 million shares of its common stock for $47 per share. The intent of

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Rock Bottom Gold Company recently repurchased 7 million shares of its common stock for $47 per share. The intent of the repurchase was to increase earnings per share to be more in line with competitors.
Required:
1. Determine the impact of the stock repurchase on assets, liabilities, and stockholders' equity.
2. Prepare the journal entry to record the repurchase.
3. How will this transaction affect the cash flow statement?
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...

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Req 1 Assets will decrease by 329 000 000 47 x 7 million shares and stockhold…View the full answer


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Financial Accounting

Financial Accounting

ISBN: 978-1259222139

9th edition

Authors: Robert Libby, Patricia Libby, Frank Hodge

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Question Posted: August 01, 2016 14:05:00
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