On March 22, 2019, Amelia, Inc., purchased 500 shares of its own common stock in the market for $21 per share.On May 19, 2019, the company sold 300 of these shares in the open market at a price of $24 per share.
Required:
Use the horizontal model (or write the entry)to show the effects on Amelia, Inc.'s financial statements of:
(a) The purchase of the treasury stock on March 22, 2019.
(b) The sale of the treasury stock on May 19,2019.

Question

On March 22, 2019, Amelia, Inc., purchased 500 shares of its own common stock in the market for $21 per share.On May 19, 2019, the company sold 300 of these shares in the open market at a price of $24 per share.
Required:
Use the horizontal model (or write the entry)to show the effects on Amelia, Inc.'s financial statements of:
 (a) The purchase of the treasury stock on March 22, 2019.
(b) The sale of the treasury stock on May 19,2019.

Quizplus · Accepted Answer

The Answer of On March 22, 2019, Amelia, Inc., purchased 500 shares of its own common stock in the market for $21 per share.On May 19, 2019, the company sold 300 of these shares in the open market at a price of $24 per share.
Required:
Use the horizontal model (or write the entry)to show the effects on Amelia, Inc.'s financial statements of:
 (a) The purchase of the treasury stock on March 22, 2019.
(b) The sale of the treasury stock on May 19,2019.