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Sheridan Inc. has outstanding 14,500 shares of $10 par value common stock. On July

Sheridan Inc. has outstanding 14,500 shares of $10 par value common stock. On July 1, 2020, Sheridan reacquired 112 shares at $88 per share. On September 1, Sheridan reissued 65 shares at $94 per share. On November 1, Sheridan reissued 47 shares at $86 per share. Prepare Sheridan’s journal entries to record these transactions using the cost method.

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Date Account titles and explanation Debit Credit
7/1/20 Treasury stock 9856  
  Cash (112*88)   9856
  (to record treasury stock purchase)    
       
       
9/1/20 Cash (65*94) 6110  
  Treasury stock (65*88)   5720
  Paid in capital from treasury stock   390
  (to record treasury stock sold)    
       
       
11/1/20 Cash (47*86) 4042  
  Paid in capital from treasury stock 94  
  Treasury stock (47*88)   4136
  (to record treasury stock sold)    
       
 
Date Account titles and explanation Debit Credit
7/1/20 Treasury stock 9856  
  Cash (112*88)   9856
  (to record treasury stock purchase)    
       
       
9/1/20 Cash (65*94) 6110  
  Treasury stock (65*88)   5720
  Paid in capital from treasury stock   390
  (to record treasury stock sold)    
       
       
11/1/20 Cash (47*86) 4042  
  Paid in capital from treasury stock 94  
  Treasury stock (47*88)   4136
  (to record treasury stock sold)    
       

Umair answered 1 year ago
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