Several years ago, Knox Industries issued 200,000 of its $2 par value stock for a total of $1,600,000. This is the only time that it has sold stock. This year it purchased 2,000 shares of its own stock for $20 a share. As a result of acquiring treasury stock:Multiple Choiceits stockholders' equity decreases by $40,000.it will recognize a loss of $40,000.its common stock account decreases by $40,000.its retained earnings decrease by $40,000.

Knox Ltd. completed the following transactions during its first month of operations for August 2023. 01 Aug Knox Ltd. began operations by issuing shares for $20,000 cash and a vehicle worth $10,000 01 Aug Borrowed $15,000 from the bank 01 Aug Prepaid $1,800 for 9-month insurance policy effective until 30 April, 2024. 08 Aug Performed consulting services for a customer and invoiced the customer $5,000, terms (3/14, n/60) 12 Aug Received $8,000 in advance for services to be performed from August to December 22 Aug Collected $5,000 cash balance from a customer on 08 Aug account 31 Aug Paid $2,000 cash dividend Knox Ltd. – Chart of accounts Assets Liabilities Equity Revenues Expenses 100 Cash 202 Salaries payable 300 Share capital 400 Service revenue 500 Salaries expense 105 Accounts receivable 203 Unearned service revenue 305 Retained earnings 505 Insurance expense 111 Prepaid insurance 205 Bank loan 310 Dividends 510 Interest expense 112 Vehicle 210 Interest payable 330 Income summary 520 Discount allowed Notes: (i) If you believe no journal is required, explain the reason(s); (ii) Ignore the effects of GST; (iii) Please include date, account names, account numbers, and amount credited/debited in your journal entries. Narrations are NOT required. Calculate the Knox Ltd’s total assets, total liabilities, and total equity as at 31 August 2023

A company reported the following stockholders’ equity on January 1 of the current year:Common stock–$10 par value, 1,000,000 shares authorized; 270,000 shares issued $ 2,700,000Paid-in capital in excess of par value, common stock 1,280,000Retained earnings 1,695,000Total stockholders’ equity $ 5,675,000Prepare journal entries for the following selected transactions.March 1  Purchased 12,000 shares of its own stock for $25 cash per share.May 5  Sold 6,000 shares of its treasury stock for $25 cash per share.October 12  Sold 4,000 shares of its treasury stock for $26 cash per share.

A company resells 400 shares of its own common stock for $20 per share. The company had acquired these shares two months before for $15 per share. The resale of this stock would be recorded with a:Multiple ChoiceCredit to Treasury Stock for $8,000.Debit to Common Stock for $8,000.Debit to Additional Paid-in Capital for $2,000.Credit to Additional Paid-in Capital for $2,000.

Almond Corporation acquires 10,000 shares of its own $1 par value common stock at $10 per share. The journal entry for this transaction includes a:Multiple Choicedebit to Common Stock for $10,000debit to Treasury Stock for $10,000debit to Common Stock for $100,000debit to Treasury Stock for $100,000

Refurbish, Inc. bought 1,000 shares of its own stock at $8 a share. Later, it reissued the shares for $10,000. The effect of the entry to record the sale of treasury stock on the accounting equation includes a(n) ______.Multiple choice question.$8,000 increase in stockholders' equity$10,000 decrease in stockholders' equity$8,000 decrease in stockholders' equity$10,000 increase in stockholders' equity