Question

Rinehart Corporation purchased from its stockholders 5,200 shares of its own previously issued stock for $260,000. It later resold 1,700 shares for $53 per share, then 1,700 more shares for $48 per share, and finally 1,800 shares for $42 per share.

Answer 1

Date	Accounts Titles and Explanation	Debit (in $)	Credit (in $)
	Treasury stock	$260,000
	Cash		$260,000
	(To record the purchase from stockholders)
	($260,000 / 5,200 shares = $50 pr share
	Cash (1,700 shares x $53)	$90,100
	Treasury stock                (1,700 shares x $50)		$85,000
	Paid in capital from treasury stock		$5,100
	(To record sales of share @ $53)
	Cash (1,700 shares x $48)	$81,600
	Paid in capital from sale of treasury stock	$3,400
	Treasury stock              (1,700 shares x $50)		$85,000
	(To record sales of share @ $48)
	Cash (1,800 shares x $42)	$75,600
	Paid in capital from sale of treasury stock ($5,100 (-) $3,400)	$1,700
	Retained earnings (Bal. Fig.)	$12,700
	Treasury stock                     (1,800 shares x $50)		$90,000
	(To record sales of share @ $42)