Use the information for Hanover Corporation in BE15-21. Assume now that the company resells the 1,000 treasury
Question:
Use the information for Hanover Corporation in BE15-21. Assume now that the company resells the 1,000 treasury shares at $55 per share. Prepare the journal entries for the repurchase and subsequent sale of the treasury shares.
Data From BE15-21:
Hanover Corporation has 750,000 shares outstanding. The shares have an average cost of $45 per share. On September 5, 2017, the company repurchases 1,500 of its own shares at $75 per share and does not cancel them. The shares are classified as treasury shares. On November 20, 2017, the company resells 1,000 of the treasury shares at $80 per share. Prepare the journal entries for the repurchase and subsequent sale of the treasury shares.
Step by Step Answer:
Intermediate Accounting
ISBN: 978-1119048541
11th Canadian edition Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy