The XYZ Corporation Sells 1 Million Shares of $2 Par

question 77

Essay

The XYZ Corporation sells 1 million shares of $2 par value common stock, for $17 per share. One year later, the corporation repurchases 100,000 shares at a market price of $14 a share. One year after that, it reissues the 100,000 shares at a market price of $22 a share.
For each transaction, prepare the journal entry and show the effect on assets, liabilities and stockholders'
equity.

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Definitions:

Interest Stage

A phase in the marketing or sales process where potential customers begin to show curiosity or concern about a product or service.

Awareness

The state or condition of being conscious of something, such as a brand or product, which is often the first stage in the marketing funnel.

Hierarchy of Effects

A sequence of stages a consumer goes through, from awareness to knowledge, liking, preference, conviction, and finally purchase of a product or service.

Last Stage

The final phase in a process, such as in product development or the life cycle of a product in the market.