Hansen Corporation's balance sheet reported the following: Common stock issued and outstanding - 10,000...

Hansen Corporation's balance sheet reported the following:

Common stock issued and outstanding - 10,000 shares $80,000

Paid-in capital in excess of par – common stock 120,000

Retained earnings 300,000

Prepare the journal entry for the following transactions that occurred this year:

(a) Purchased 200 shares of capital stock to be held as treasury stock, paying $75 per share.

(b) Sold 80 of the shares of treasury stock at $80 per share.

(c) Sold 70 shares of treasury stock at $65 per share.

(d) Retired the remaining shares

Expert Solution

Solution:

	Journal Entries
	Sr. No.	Date	Account Title and explanation	Debit	Credit

	1	A	Treasurry stock (200 Shares X $ 75)	$15,000
			Cash		$15,000
			(To Record the purchase of treasurry Stock)


	2	B	Cash (80 Shares X $ 80)	$6,400
			Treasurry Stock (80 Shares X $ 75)		$6,000
			Addittional Paid in Capital - Treasurry Stock		$400
			(To record the resold of treasury stock)


	3	C	Cash (70 Shares X $ 65)	$4,550
			Addittional Paid in Capital - Treasurry Stock (Balance)	$400
			Retained Earnings	$300
			Treasurry Stock (70 Shares X $ 75)		$5,250
			(To record the resold of treasury stock)


	4	D	Common Stock (50 Shares X $ 8)	$400
			Paid in Capital in excess of par - Common Stock	$3,350
			Treasury Stock (50 Shares X $ 75)		$3,750
			(To record the retire of remainning 50 Shares)

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