On May 3, Zirbal Corporation purchased 7,000 shares of its own stock for $49,000 cash. On November 4, Zirbal reissued 1,050 shares of this treasury stock for $8,400. Prepare the May 3 and November 4 journal entries to record Zirbal’s purchase and reissuance of treasury stock.

Answer and Explanation:

The Journal entries are shown below:-

1. Treasury Stock-at cost Dr, $49,000

         To Cash $49,000

(Being treasury stock is recorded)

Here we debited the treasury stock-at cost as it is purchased and we credited the cash as it decrease the assets

2. Cash Dr, $8,400

       To Treasury Stock - at cost $7,350

        To Paid in capital -Treasury stock $1,050  ($8,400 - $7 × 1,050)

(Being reissue of treasury stock is recorded)

Here we debited the cash as it increase the assets and we credited the Treasury Stock - at cost and  Paid in capital -Treasury stock as the re-issuance of the treasury stock is done.

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

answer; ///hong kong;