Sheffield Inc. has outstanding 13,100 shares of $10 par value common stock. On July 1, 2017, Sheffield reacquired 113 shares at $88 per share. On September 1, Sheffield reissued 62 shares at $94 per share. On November 1, Sheffield reissued 51 shares at $86 per share.

Prepare Sheffield's journal entries to record these transactions using the cost method.

The journal entries for the given economic events are given below:

Date         Account Title                         Debit     Credit

7/1/17      Treasury Stock (113 X $88)     9,944

                 Cash                                                       9,944

9/1/17       Cash (62 X $94)                     5,828

                 Treasury Stock (60 X $88)                   5,280

                  Paid-in Capital from

                  Treasury Stock                                      548

(Paid in capital from Treasury Stock = 5828 - 5280 = 548)

11/1/17Cash (51 X $86)                           4,386

                Paid-in Capital from

                Treasury Stock                          102

                     Treasury Stock (51 X $88)                   4,488

(Paid in capital from Treasury Stock = 4488 - 4386 = 548)

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.