On January 1, 2020, the stockholders’ equity section of Bramble Corp. shows common stock ($6 par...

On January 1, 2020, the stockholders’ equity section of Bramble Corp. shows common stock ($6 par value) $1,800,000; paid-in capital in excess of par $1,100,000; and retained earnings $1,170,000. During the year, the following treasury stock transactions occurred.

Mar.	1	Purchased 52,000 shares for cash at $15 per share.
July	1	Sold 12,000 treasury shares for cash at $17 per share.
Sept.	1	Sold 10,000 treasury shares for cash at $14 per share.

(a)

Your Answer
Correct Answer (Used)

Journalize the treasury stock transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit

July 1Mar. 1Sept. 1

Sept. 1Mar. 1July 1

Sept. 1July 1Mar. 1

(b)

Restate the entry for September 1, assuming the treasury shares were sold at $12 per share. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit

Sept. 1July 1Mar. 1

Solutions

Expert Solution

Journal Entries
Date	Account Title and Explanation	Debit	Credit
01-Mar	Treasury Stock Dr (52000*$15)	$7,80,000
	To Cash		$7,80,000
	(To record purchase of Treasury stock)

01-Jul	Cash Dr (12000*$17)	$2,04,000
	To Treasury Stock (12000*$15)		$1,80,000
	To Paid in capital from treasury stock		$24,000
	(To record sales of 12000 treasury shares)

01-Sep	Cash Dr (10000*$14)	$1,40,000
	Paid in capital from treasury stock Dr	$10,000
	To Treasury Stock (10000*$15)		$1,50,000
	(To record sales of 10000 treasury shares)

01-Sep	Cash Dr (10000*$12)	$1,20,000
	Paid in capital from treasury stock Dr (available from July 1)	$24,000
	Retained earnings (Bal. fig.)	$6,000
	To Treasury Stock (10000*$15)		$1,50,000
	(To record sales of 10000 treasury shares)

ekkarill92 answered 1 year ago

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