The December 31, 2009 balance sheet of MBI Company included the following:
MBI completed the following transactions in 2009 relating to treasury stock:
March 17: Reacquired 2 million shares at $10.
May 17: Reacquired 2 million shares at $9.
August 10: Issued 3 million shares at $12.
Required:
Assuming MBI uses the cost method, prepare journal entries to record the foregoing transactions on a weighted average basis.
$\begin{array}{lr}
\text { Common stock, } 20 \text { million shares outstanding at } \$ 1 \text { par } & \$ 20,000,000 \
\text { Paid-in capital - excess of par } & 100,000,000 \
\text { Retained earnings } & 115,000,000
\end{array}$

Question

The December 31, 2009 balance sheet of MBI Company included the following:
MBI completed the following transactions in 2009 relating to treasury stock:
March 17: Reacquired 2 million shares at $10.
May 17: Reacquired 2 million shares at $9.
August 10: Issued 3 million shares at $12.
Required:
Assuming MBI uses the cost method, prepare journal entries to record the foregoing transactions on a weighted average basis.
 $\begin{array}{lr}
\text { Common stock, } 20 \text { million shares outstanding at } \$ 1 \text { par } & \$ 20,000,000 \
\text { Paid-in capital - excess of par } & 100,000,000 \
\text { Retained earnings } & 115,000,000
\end{array}$

Quizplus · Accepted Answer

The Answer of The December 31, 2009 balance sheet of MBI Company included the following:
MBI completed the following transactions in 2009 relating to treasury stock:
March 17: Reacquired 2 million shares at $10.
May 17: Reacquired 2 million shares at $9.
August 10: Issued 3 million shares at $12.
Required:
Assuming MBI uses the cost method, prepare journal entries to record the foregoing transactions on a weighted average basis.
 $\begin{array}{lr}
\text { Common stock, } 20 \text { million shares outstanding at } \$ 1 \text { par } & \$ 20,000,000 \
\text { Paid-in capital - excess of par } & 100,000,000 \
\text { Retained earnings } & 115,000,000
\end{array}$

The December 31, 2009 Balance Sheet of MBI Company Included