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Cotton Company has 110000 shares issued of​ $5 par common stock. The company currently has​ 1,000 shares at a total cost of $ 14000 as treasury stock. If the company buys another 16000 shares of treasury stock at $ 11 per​ share, the amount in the Treasury Stock minus Common account would be​ _________.

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To calculate the amount in the Treasury Stock minus Common account, we need to determine the total cost of the treasury stock after the additional shares are purchased.

  1. Calculate the cost of the current treasury stock:

    • The company currently has 1,000 shares of treasury stock at a total cost of $14,000.

  2. Calculate the cost of the new treasury stock:

    • The company will buy 16,000 shares at $11 per share.
    • Cost of new treasury stock = 16,000 shares * $11/share = $176,000.

  3. Calculate the total treasury stock balance:

    • Total cost of treasury stock = Cost of current treasury stock + Cost of new treasury stock
    • Total cost of treasury stock = $14,000 + $176,000 = $190,000.

Therefore, the amount in the Treasury Stock minus Common account would be $190,000.

Cotton Company has 110000 shares issued of​ $5 par common stock. The company currently has​ 1,000 shares at a total cost of $ 14000 as treasury stock. If the company buys another 16000 shares of treasury stock at $ 11 per​ share, the amount in the Treasury Stock-Common account would be​ _________.

To calculate the amount in the Treasury Stock account for Cotton Company after purchasing additional treasury stock, follow these steps:

  1. Current Treasury Stock:

    • The company currently has 1,000 shares of treasury stock with a total cost of $14,000.

  2. Cost of Additional Treasury Stock:

    • The company will buy 16,000 shares at $11 per share.
    • Cost of additional treasury stock = 16,000 shares * $11/share = $176,000.

  3. Total Treasury Stock Cost:

    • Total cost of treasury stock after the purchase = Current treasury stock cost + Cost of additional treasury stock
    • Total cost of treasury stock = $14,000 + $176,000 = $190,000.

So, the amount in the Treasury Stock account (which is sometimes referred to as Treasury Stock minus Common account) would be $190,000.