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Entries for Treasury Stock
On May 27, Let Loose Inc. reacquired 79,000 shares of its common stock at $10 per share. On August 3, Let Loose sold 54,000 of the reacquired shares at $13 per share. On November 14, Let Loose sold the remaining shares at $8 per share.
Journalize the transactions of May 27, August 3, and November 14. If an amount box does not require an entry, leave it blank.
May 27Treasury Stock
Cash
Aug. 3Cash
Treasury Stock
Paid-In Capital from Sale of Treasury Stock
Nov. 14Cash
Paid-In Capital from Sale of Treasury Stock
Treasury Stock
Solution
Date | General Journal | Debit | Credit |
May-27 | Treasury stock | $ 790,000.00 | |
Cash | $ 790,000.00 | ||
(To record purchase of treasury stock) | |||
Aug-03 | Cash | $ 702,000.00 | |
Treasury stock | $ 540,000.00 | ||
Paid-In Capital from Sale of Treasury Stock | $ 162,000.00 | ||
(To record sale of treasury stock) | |||
Nov-14 | Cash | $ 200,000.00 | |
Paid-In Capital from Sale of Treasury Stock | $ 50,000.00 | ||
Treasury stock | $ 250,000.00 | ||
(To record sale of treasury stock) |
Any gain on sale of treasury stock is credited to Paid-In Capital from Sale of Treasury Stock and loss on sale is adjusted to Paid-In Capital from Sale of Treasury Stock if there is any balance in Paid-In Capital from Sale of Treasury Stock account.