21) The purchase of treasury stock returns ________ to the stockholders but also ________.
A) stock; increases their ownership of the company
B) stock; decreases their ownership of the company
C) cash; increases their ownership of the company
D) cash; decreases their ownership of the company
22) A company buys treasury stock for $10 per share. The company later sells the treasury stock for $11 per share. What is the difference between the resale price and the cost of the treasury stock called?
A) Gain on Sale of Treasury Stock
B) Loss on Sale of Treasury Stock
C) Paid-in Capital in Excess of Par
D) Paid-in Capital from Treasury Stock Transactions
23) On February 3, 2015 Bombard Corporation acquired 4,000 shares of its own $1 par value common stock for $30 per share. On May 24, 2015, 1,500 shares of the treasury stock were sold for $35 per share.
Required:
Prepare the journal entries to record the purchase and sale of the treasury stock. Omit explanations.
24) On February 1, 2015, United Delivery Services reports Common Stock of $1 million, Paid-in Capital in Excess of Par--Common of $9 million and Retained Earnings of $10 million. On February 2, 2015, United Delivery Services reacquired 10,000 shares of its $10 par value common stock at $50 per share. On February 23, United Delivery Services sold 1,000 of the reacquired shares at $65 per share. On February 27, the remaining 9,000 shares were sold at $40 per share.
Required:
1.Prepare the journal entries necessary to record these transactions. Omit explanations.