1question 2part

Q1. Consider the journal entry to repurchase the shares. What is the TOTAL DOLLAR NET IMPACT on stockholder's equity?

Q2:

What is the amount of the CREDIT (if any) to the Paid in Capital Shares Repurchases account?

USE THE FOLLOWING FACTS TO ANSWER THE NEXT FOUR QUESTIONS: FACTS: Equity section BEFORE repurchase of shares: BEFORE REPURCHASE BEFORE REPURCHASE 854,000 $854,000 $1.00 # Common Shares Par Value Per Share Paid in Capital in Excess of PV Paid in Capital Share Repurchases $3,900,000 $38,000 $2,000,000 Retained Earnings TOTAL STOCKHOLDER'S EQUITY $6,792,000 ADDITIONAL INFORMATION: # Shares reacquired Reacquired for per share ASSUME THE SHARES ARE RETIRED. 43,000 shares $2.50 PLEASE ROUND ALL PERCENTAGES (%'S) TO AT LEAST SIX DECIMALS WHEN MAKING YOUR COMPUTATIONS