Joe Dumars Company has outstanding 40,000 shares of $5 par common stock which had been issued at $30 per share. Joe Dumars then entered into the following transactions.
1. Purchased 5,000 treasury shares at $45 per share.
2. Resold 2,000 of the treasury shares at $49 per share.
3. Resold 500 of the treasury shares at $40 per share.
Indicate the effect each of the three transactions has on the financial statement categories listed in the table below, assuming Joe Dumars Company uses tHE cost method.
NEED THE WRONG ANSWERS (X) CORRECTED
# Assets Liabilities Stockholders' Equity Paid-in Capital Retained Earnings Net Income
1. (/)Decrease (/)No effect (/)Decrease (/)No effect (/)No effect (/)No Effect
2. (/)Increase (/)No effect (/)Increase (X)No effect (X)Decrease (/)No effect
3. (/)Increase (/)No effect (/)Increase (X)Increase (/)No effect (/)No effect
Solved
Show answers
More tips
- H Health and Medicine How to Improve Your Posture?...
- A Animals and plants How to Properly Care for a Pet Decorative Rabbit at Home?...
- C Computers and Internet How to Check the Speed of My Internet?...
- H Health and Medicine 10 Ways to Cleanse Your Colon and Improve Your Health...
- W Work and Career How to Write a Resume That Catches the Employer s Attention?...
- C Computers and Internet Е-head: How it Simplifies Life for Users?...
- F Family and Home How to Choose the Best Diapers for Your Baby?...
- F Family and Home Parquet or laminate, which is better?...
- L Leisure and Entertainment How to Properly Wind Fishing Line onto a Reel?...
- L Leisure and Entertainment How to Make a Paper Boat in Simple Steps...
Answers on questions: Business
- B Business a. Suppose Whole Foods adopts a cost leadership strategy for its new business. What would be the advantages and disadvantages of this strategy...
- B Business Brian owns a parcel of land that is encumbered by a mortgage held by the First International Bank. Brian agrees to sell the land to Piercel for $350,000. Brian and Pierce together...
- B Business Despite its popularity, the Internet has not affected the way in which individuals search for jobs. b. Today s job market remains stable and remarkably similar to the job market...
- B Business Do you think the phases work the same in construction as they do in event management or software development...
- B Business An organization s budget program should not be used: Group of answer choices to motivate employees. to assign blame to managers that do not meet budgetary goals. to help evaluate...
- B Business In order to satisfy the writing requirement of the Statute of Frauds, the writing must include all of the following except Group of answer choices Place of delivery Quantity Signature...
- B Business Management is a process designed to achieve an organization s objectives by using its resources (accomplishing the objectives with a minimum of resources) and (having the intended...
- B Business How does a company utilize stocks and bonds in financing growth?...
- B Business A corporate charter specifies that the company may sell up to 23 million shares of stock. The company sells 15 million shares to investors and later buys back 4.5 million shares....
- B Business You want to invest $18,000 and are looking for safe investment options. Your bank is offering you a certificate of deposit that pays a nominal rate of 6% that is compounded semiannually....
Ответ:
A
Step-by-step explanation: because i took the test :D