Kagel Corporation Had 30,000 Shares of $5 Par Value Common $\$ 16$

question 130

Essay

Kagel Corporation had 30,000 shares of $5 par value common stock issued and outstanding on December 31,2009.Each share was issued during 2007 at $14 per share.Prepare the entries in journal form without explanations for the following transactions occurring in 2010:
Jan. 4 Purchased 5,000 shares of treasury stock for $\$ 16$ per share. This is the first transaction involving its own stock ever engaged in by the company.
31 Sold 1,000 shares of treasury stock for \$15 per share.

Feb. 20 Sold 1,000 shares of treasury stock for $\$ 18$ per share.
Mar. 16 Sold 1,000 shares of treasury stock for $\$ 11$ per share.
Apr. 5 Retired 2,000 shares of treasury stock.
May 8 Purchased 500 shares of treasury stock for $\$ 12$ per share.
31 Retired the 500 shares of treasury stock purchased on May 8 .

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Definitions:

Expected Return

The mean of all potential outcomes for an investment, adjusted based on the probability of each scenario occurring.

Standard Deviation

A metric assessing how much a group of data points or investment yields spread out or differ from each other.

Investment Opportunity Set

The range of possible investment options available to an investor, based on their risk tolerance and investment objectives.

Efficient Frontier

A graph representing the set of portfolios that provides the highest expected return for a defined level of risk or the lowest risk for a given level of expected return.