The Following Information Is Provided from the Forza Corporation's Accounting

question 61

Essay

The following information is provided from the Forza Corporation's accounting records.
1) Issued 2,500 shares of $1 par common stock at $23 a share.
2) Issued 7,500 shares of $1 par common stock in exchange for land valued at $65,000.
3) In order to prevent a hostile takeover the company reacquired the 7,500 shares for $20 per share as treasury stock.
4) The hostile takeover did not succeed, and the company reissued 5,500 of the treasury shares of $21 per share.
5) The remaining treasury shares were reissued for $22 per share and an additional 2,000 shares were issued at the same price.
Required:
Prepare the journal entries for the stock transactions, using the cost method assumption to account for the treasury stock.

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Definitions:

Multiple Regression

The use of several influencing variables in statistics to project the output of a specific response variable.

Prediction

Prediction involves the use of statistics or models to forecast future events based on current or past data.

Extrapolation

The process of estimating beyond the original observation range, based on the trend of the data.

Multiple Linear Regression Analysis

It is a statistical technique that uses several explanatory variables to predict the outcome of a response variable.