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Required information [The following information applies to the questions displayed below.] The following selected transactions occurred...

Required information

[The following information applies to the questions displayed below.]

The following selected transactions occurred for Corner Corporation:

Feb. 1 Purchased 480 shares of the company’s own common stock at $28 cash per share; the stock is now held in treasury.
July 15 Issued 140 of the shares purchased on February 1 for $38 cash per share.
Sept. 1 Issued 100 more of the shares purchased on February 1 for $23 cash per share.
  1. What impact does the purchase of treasury stock have on dividends paid?
Business   Accounting   
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Answer #1

The Treasury Stock is the own shares that are purchased by the company themself.

Treasury stock will be reduced from Stockholder's Equity and they will not autherised for voting rights.

No divident will be provided to Treasury stock while declairing Divident to Shareholders.

The divident will be provided to the shares those resold to others from Treasury stock.

Here,

In this case, 240 shares are in Treasury stock after re-issue of Treasury stock (240 shares -(140shares +100 shares))

The balance 240 shares will not provided the Divident.

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