1 in 2012 mordica co issued 300 000 of its 500 000

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1. In 2012, Mordica Co. issued 300, 000 of its 500, 000 authorized shares of $10 par value common stock at $35 per share. In January, 2013, Mordica repurchased 20,000 shares at $30 per share. Consider these are the only stock transactions company has ever had.

Required:

(a) Find what are the two methods of accounting for treasury stock?

(b) Fill the journal entry to record the purchase of treasury stock by the cost method.

(c) 7,000 shares of treasury stock are reissued at $33 per share. Create the journal entry to record the reissuance by cost method.

Reference no: EM13370504

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