Question

Jimmy Joe's, Inc. had the following transactions for this year. Prepare journal entries for each transaction, post the transactions to T-accounts, and determine the ending balance of accounts needed to answer the questions. 1-Jan Jimmy Joe's, Inc. issued 6,000 shares of $3 par common stock for $20,000. 15-Mar Jimmy Joe's, Inc. purchased 5,000 shares of their own stock on the open market for $12 cash per share. 10-Jul Jimmy Joe's, Inc. re-issued 4,000 shares of treasury stock for $14 per share. 31-Oct Jimmy Joe's, Inc. re-issued 1,000 shares of treasury stock for $11 per share. a) What is the July 10 balance in the Treasury Stock-Common account, using the cost method? $ unanswered b) What is the October 31 balance in the Paid in Capital from Treasury Stock account, using the cost method? $ unanswered

Answer 1

a	July 10 balance in the Treasury Stock-Common account			12,000
b	October 31 balance in the Paid in Capital from Treasury Stock			8,000

Jimmy Joe's, Inc				-
Date	Account	Debit	Credit	Calculation
1-Jan	Cash	20,000
	Common Stock		18,000	=6,000*3
	Paid in Capital in Excess of Par Value-CS		2,000
15-Mar	Treasury Stock	60,000		=5,000*12
	Cash		60,000
10-Jul	Cash	56,000		=4,000*14
	Treasury Stock		48,000	=4,000*12
	Paid in Capital from Treasury Stock		8,000
31-Oct	Cash	11,000		=1,000*11
	Paid in Capital from Treasury Stock	1,000
	Treasury Stock		12,000	=1,000*12