-what happens when treasury stock is reissued at a price above cost? -what is ba
ID: 2492075 • Letter: #
Question
-what happens when treasury stock is reissued at a price above cost?
-what is basic purpose of bookkeeping? auditing?
-what does a balance sheet do?
-how to record entries in both a periodic and perpetual system
-how to calculate gross profit
- the different categories of adjustments
- how to prepare a bank rec - and the classification of reconciling items
- how to prepare any necessary journal entries after preparing a bank rec
- the formula to calculate CGS in a periodic system
-what happens to the amount that a business withholds as taxes from an employee's earnings -(it's a current liability to the employer)
-for depreciation, know how to calculate for two consecutive years
- the different depreciation methods discussed
- LCM rule
- what is a deficit is and how it appears in a corporations financial statements
- how to correct errors in a bank reconciliation
-what would result in an over or understatement of ending inventory
- the steps of the accounting cycle
-what does the process of posting do?
-what is the entity principle?
-how is CGS determined in a periodic system?
-why are financial statements prepared?
-how is profitability defined?
-using the same method year after year is in line with which GAAP principle?
-what is liquidity?
-What kind of accounts are prepaid expenses and unearned revenues?
-what are characteristics of financial accounting?
-what is a current liability vs. long term liability? –
-what purpose does a bank reconciliation serve?
-know the four categories of adjustments
-what is accumulated depreciation?
-what are the basic financial statements?
-what exactly is a trial balance?
-given info for stock – how to calculate the balance in the common stock account
-what is the purpose of an audit?
-what is retained earnings?
-what is an NSF check and how is it reflected on a bank rec?
-what are the differences the difference between authorized, issued, and outstanding shares of stock
- Closing entries do what?
- What is an NSF check and how does it affect a bank rec?
-What are advantages and disadvantages of the corporate form of organization?
- What do a DR and CR balance mean in the income summary account?
- How is an after closing trial balance different from an adjusted trial balance?
- What is the Lower of cost or market rule and what does it apply to?
- What are the two principles of GAAP applied for adjusting entries?
- What is petty cash? what does a petty cash fund do?
- how to calculate the gross profit rate
- What is the difference between current and long term liabilities?
Explanation / Answer
-what happens when treasury stock is reissued at a price above cost?
Answer:
If the shares from treasury stock are reissued at a price that is higher than their cost, the difference is credited to additional paid-in capital. The journal entry is given below:
what is basic purpose of bookkeeping? auditing?
Answer: The purpose of bookkeeping is to create a record of financial transactions that can be summarized for various uses. Bookkeeping systems range from the most basic, such as the check register used to record checks and deposits, to the complex systems of ledgers and journals used by large corporations.
The purpose of an audit is to provide an objective independent examination of the financial statements, which increases the value and credibility of the financial statements produced by management, thus increase user confidence in the financial statement, reduce investor risk and consequently reduce the cost of capital.
what does a balance sheet do
Answer:a statement of the assets, liabilities, and capital of a business or other organization at a particular point in time, detailing the balance of income and expenditure over the preceding period.
Cash xxxx Treasury stock xxxx Additional paid in capital – treasury stock xxxxRelated Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.