G During fiscal 2011, we repurchased with cash (i. e., bought) 2 million shares of common stock for an aggregate purchase cost of $700 million. We reissued (i. e., sold) 5 million shares of common stock held in treasury for $2000 million in cash during fiscal 2011. The cost basis of the 5 million shares of treasury stock reissued is $300 per share. What journal entries did ALM record in its treasury stock transactions in 2011

Dr. Treasury Stock $700 million

Cr.  Cash                 $700 million

Dr.  Cash                                          $2,000 million

Cr. Add-in-Capital Treasury Stock $500 million

Cr. Treasury Stock                          $1,500 million

Explanation:

Treasury stocks are the company's own shares which is repurchased by the company. It is recorded in treasury shares account which is an contra equity account. I can be reissued or cancelled by the company.

Purchase of Treasury Stock

Treasury Stock = $700 million

Sales of Treasury Stock

Cash Receipt = $2,000

Treasury Stock = 5 million x $300 = $1,500

Paid-in capital - Treasury stock = $2,000 - $1,500 = $500

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

correct, but each time you dont pay the price of the penalty can increase.