Ask Question
BusinessBusiness
7 May, 17:48

Dilution Solutions, Inc. repurchased 1,000 shares of its $1 par value common stock for $5,000. The journal entry to record this transaction includes a $5,000 to Treasury Stock.

+2
Answers (1)
  1. 7 May, 19:09
    0
    The journal entry to record this transaction includes a $5,000 DEBIT to Treasury Stock.

    Explanation:

    The journal entry for this transaction should be:

    Dr Treasury Stock account 5,000 Cr Cash account 5,000

    Treasury stock is a contra asset account, therefore when it increases, it should be debited.

    Cash is an asset account, therefore when it deceases, it should be credited.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Dilution Solutions, Inc. repurchased 1,000 shares of its $1 par value common stock for $5,000. The journal entry to record this transaction ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Suggestive selling, accepting credit cards as payment, and expanding operating hours to 24 hours are strategies used by the fast food industry to
Answers (1)
What was the first product sold by heinz in 1869?
Answers (1)
For an airline, which of the following would not be an operational budget? A cash receipts budget of flying consumers. A budget of planned air miles to be flown. A fuel budget. A materials budget for aircraft parts. A labor budget for flight crew.
Answers (2)
Automatic stabilizers are critical to the success of supply-side policies. True or False
Answers (1)
Laura received a grant that will pay for 30% of her annual estimated tuition and a scholarship that will pay for her books. What is the minimum Laura should expect to contribute to her college education for all four years?
Answers (1)
New Questions in Business
Effective vision statements include a. financial objectives and projected figures. b. all strategic directions of the organization. c. strategic posturing and future objectives. d. a brief statement of the company's direction.
Answers (1)
True or false: people in business get ahead by meeting the needs of their consumers. as a result, both businesses and customers benefit from voluntary exchange.
Answers (1)
Jim and kathy have a contract with a term that is not clear. kathy and jim both have a different interpretation of the contract. if kathy wrote the contract, a court will
Answers (1)
What is a great marketing strategy
Answers (2)
On January 1, 20X8, Package Company acquired 80 percent of Stamp Company's common stock for $280,000 cash.
Answers (1)
Home » Business » Dilution Solutions, Inc. repurchased 1,000 shares of its $1 par value common stock for $5,000. The journal entry to record this transaction includes a $5,000 to Treasury Stock.
Sign Up Forgot Password?