When shares are repurchased and held in treasury, and the purchase is at more than the original

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When shares are repurchased and held in treasury, and the purchase is at more than the original issue price, the journal entry to record the repurchase potentially includes which of the following components under the single-transaction method?

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Intermediate Accounting Volume 2

ISBN: 9780135220498

4th Edition

Authors: Kin Lo, George Fisher

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Question Posted: Oct 31, 2022 04:57 AM

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When shares are repurchased and held in treasury, and the purchase is at more than the original

Question:

Account Debit to share capital Debit to contributed surplus Debit to retained earnings Debit to treasury shares Debit to accumulated other comprehensive income (AOCI) Credit to share capital Transaction potentially affects this account in the manner indicated (Yes/No)

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1 Debit to share capital When a company repurchases shares it is effectively reducing th...View the full answer

Intermediate Accounting Volume 2

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