Problem
• Why do corporations purchase and issue treasury stock?
• What is the Journal entry for recording the purchase of treasury stock?
• How would you record the reissuance of treasury stock if the proceeds obtained are: at cost of the treasury stock? Less than the cost of the treasury stock? More than the cost of the treasury stock?
• What is the main difference between notes payable and bonds payable?
• What is the main difference between a bond and a share of stock?
• What does it mean to issue bonds at: Par? At a Discount? At a Premium?
• What is the difference between the contract (coupon) rate and the market rate for bonds?
• What is the journal entry for recording the issue of a discount bond? What is the entry for recording interest and amortization?
• What is the journal entry for recording the issue of a premium bond? What is the entry for recording interest and amortization?
• What is the Journal entry for recording the bond maturity?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.