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    ayrazusta's Avatar
    ayrazusta Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Apr 27, 2016, 09:23 AM
    Assume Dubello Company uses the cost method for any treasury stock transactions.
    Assume Dubello Company uses the cost method for any treasury stock transactions.
    Dubello Company has the following information about it's common stock on January 1 of the current year:
    Common Stock, $4 par; 200,000 shares authorized, 80,000 shares issued

    • On January 2, Dubello purchases 4,000 shares of it's own stock for $30 per share.
    • On January 3, Dubello declares a cash dividend on common stock of 50 cents per share.

    1. What is the balance in the common stock account after the purchases on January 2?


    2. By what amount will retained earnings decrease on January 3 as a result of the dividend?
    Curlyben's Avatar
    Curlyben Posts: 18,514, Reputation: 1860
    BossMan
    		  
    #2

    Apr 27, 2016, 09:25 AM
    So what do YOU think.
    We're happy to help, but we will NOT do the work for you.
    ayrazusta's Avatar
    ayrazusta Posts: 2, Reputation: 1
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    #3

    Apr 27, 2016, 09:28 AM
    Is the second one 60?
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