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Wildhorse Co. purchased from its stockholders 5,300 shares of its own previously issued stock for $275,600....

Wildhorse Co. purchased from its stockholders 5,300 shares of its own previously issued stock for $275,600. It later resold 1,900 shares for $55 per share, then 1,900 more shares for $50 per share, and finally 1,500 shares for $44 per share.

Prepare journal entries for the purchase of the treasury stock and the three sales of treasury stock. (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.)

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Expert Solution

Date General Journal Debit Credit
1) Treasury Stock (5300 shares*$52) $ 275,600
                                            Cash $ 275,600
(To record purchase of shares 5300 shares for $275,600 )
2) Cash (1,900 shares * $55 ) $104,500
                   Treasury Stock (1,900 shares *$52 ) $ 98,800
                   Paid-in-Capital from Treasury Stock (1,900 Shares*$3) $ 5,700
(To record Sale of shares 1,900 shares @$55 per share )
3) Cash (1,900 shares * $50 ) $ 95,000
Paid-in-Capital from Treasury Stock (1,900 Shares*$2) $ 3,800
                   Treasury Stock (1,900 shares *$52 ) $98,800
(To record Sale of shares 1,900 shares @$50 per share )
4) Cash (1,500 shares * $44 ) $66,000
Paid-in-Capital from Treasury Stock (1,500 Shares*$8) $ 12,000
                   Treasury Stock (1,500 shares *$52 ) $ 78,000
(To record Sale of shares 1,900 shares @$50 per share )

ekkarill92 answered 1 year ago
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