Journal entry to record liquidating dividend


24-Nov-2019 18:51

journal entry to record liquidating dividend-40

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Subsequent transactions between stockholders are not accounted for by The J Trio, Inc.

and have no effect on the value of stockholders' equity on the balance sheet.

Shares of treasury stock do not have the right to vote, receive dividends, or receive a liquidation value.

Companies purchase treasury stock if shares are needed for employee compensation plans or to acquire another company, and to reduce the number of outstanding shares because the stock is considered a good buy.

As a corporation cannot be its own shareholder, any shares purchased by the corporation are not considered assets of the corporation.

Assuming the corporation plans to re‐issue the shares in the future, the shares are held in treasury and reported as a reduction in stockholders' equity in the balance sheet.

If the treasury stock is sold above its cost, the sale increases (debits) cash for the proceeds received, decreases (credits) treasury stock for the cost paid when the treasury stock was repurchased, and increases (credits) additional paid‐in‐capital—treasury stock for the difference between the selling price and the repurchase price.

If Soccer Trio Corporation subsequently sells 7,500 of the shares repurchased for for , the entry to record the sale would be as shown: When the remaining 7,500 shares are sold, the entry to record the sale includes an increase (debit) to cash for the proceeds received, a decrease (credit) to treasury stock for the repurchase price of per share or 7,500, and a decrease (debit) to additional paid‐in‐capital × treasury stock, if the account has a balance, for the difference.

journal entry to record liquidating dividend-75

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, issues 10,000 shares of its

, issues 10,000 shares of its $1 par value common stock in exchange for land to be used as a plant site, the market value of the stock on the date it is issued is used to value the transaction.

The entry to record this exchange would be based on the invoice value because the market value for the corporation's stock has not yet been determined.

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, issues 10,000 shares of its $1 par value common stock in exchange for land to be used as a plant site, the market value of the stock on the date it is issued is used to value the transaction.The entry to record this exchange would be based on the invoice value because the market value for the corporation's stock has not yet been determined.

par value common stock in exchange for land to be used as a plant site, the market value of the stock on the date it is issued is used to value the transaction.

The entry to record this exchange would be based on the invoice value because the market value for the corporation's stock has not yet been determined.