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Question: Refer to the information in BE10-8.


Refer to the information in BE10-8. Determine the financial statement effects of the purchase of treasury stock.

Data from BE10-8:
California Surf Clothing Company issues 1,000 shares of $1 par value common stock at $35 per share. Later in the year, the company decides to purchase 100 shares at a cost of $38 per share. Record the purchase of treasury stock.


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See Answer