The December 31, 2013, balance sheet of MBI Company included the following: MBI completed the following transactions in 2013 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.

Question

The December 31, 2013, balance sheet of MBI Company included the following:  MBI completed the following transactions in 2013 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.

Quizplus · Accepted Answer

The Answer of The December 31, 2013, balance sheet of MBI Company included the following:  MBI completed the following transactions in 2013 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.

The December 31, 2013, Balance Sheet of MBI Company Included