In 2014, Hobbs Corp

question 121

Short Answer

In 2014, Hobbs Corp. acquired 12,000 shares of its own $1 par value common stock at $18 per share. In 2015, Hobbs issued 8,000 of these shares at $25 per share. Hobbs uses the cost method to account for its treasury stock transactions. What accounts and what amounts should Hobbs credit in 2015 to record the issuance of the 6,000 shares?

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Definitions:

Mesoderm

The middle layer of an embryo in early development, which gives rise to muscles, bones, and other related structures.

Pituitary Gland

A small, pea-sized gland located at the base of the brain, responsible for the production and secretion of hormones that regulate many bodily functions.

Gastrulation

An early embryonic process in which the single-layered blastula is reorganized into a multilayered structure known as the gastrula, forming the basic body plan.

Ectoderm

The outermost layer of cells or tissue of an embryo in early development, giving rise to the outer layer of skin, nails, hair, and nervous system.