On April 1, 2009, Jetter Corporation reacquired 2,000 shares of its own $10 par share for $120,000 cash. On October 15, 2009, 600 of the treasury shares were reissued at a price of $65 per share.

-Refer to the above data. The reacquisition of the 2,000 shares on April 1, 2009, causes:

Question

On April 1, 2009, Jetter Corporation reacquired 2,000 shares of its own $10 par share for $120,000 cash. On October 15, 2009, 600 of the treasury shares were reissued at a price of $65 per share.

-Refer to the above data. The reacquisition of the 2,000 shares on April 1, 2009, causes:

Quizplus · Accepted Answer

The reacquisition of shares reduces cash (an asset) and increases treasury stock (a contra-equity account), leading to a reduction in both total assets and total shareholders' equity.

On April 1, 2009, Jetter Corporation Reacquired 2,000 Shares of Its