HEMI has been very successful in its second year of operations, and its Board of Directors...

 

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HEMI has been very successful in its second year of operations, and its Board of Directors has authorized the repurchase of its common shares at fair market value. On January 5, 2023, HEMI bought back 10,000 common shares at a market price of $100/share (shares were initially issued at $80/share); provide a journal entry to record the repurchase of the shares HEMI has been very successful in its second year of operations, and its Board of Directors has authorized the repurchase of its common shares at fair market value. On January 5, 2023, HEMI bought back 10,000 common shares at a market price of $100/share (shares were initially issued at $80/share); provide a journal entry to record the repurchase of the shares

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This question pertains to accounting specifically the recording of treasury stock transactions When a company repurchases its own shares those shares become treasury stock which is a contra equity account The repurchase of common shares is recorded by debiting Treasury Stock and crediting Cash because cash is paid out by the company to acquire the shares First determine the total cash paid for the shares 10000 shares 100share 1000000 This transaction ... View the full answer