Ayayai Corp. purchased 2,600 shares of its $8 par value common stock for $79,040 on August 1. It will hold these in the treasury until resold. Prepare a tabular summary to record the treasury stock transaction. Include margin explanations for the changes in revenues and expenses. Include margin explanations for the changes in revenues and expenses.

Answer and Explanation:

The journal entry is shown below:

Treasury stock Dr $79,040

    To cash $79,040

(Being the recording of the treasury stock is recorded)

Here we debited the treasury stock as it increased the treasury stock because it contains the debit balance and on the other hand the cash is credited as it decreased the assets

hi : ) i found this so i hope this !

"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"

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