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Recording Treasury Stock Transactions On January 2, 2020, Liberty Corporation was authorized to issue 300,000 shares...

Recording Treasury Stock Transactions

On January 2, 2020, Liberty Corporation was authorized to issue 300,000 shares of $5 par value common stock. Liberty issued 60,000 shares of common stock on January 15, 2020, at $15 per share.

Required

a. Record the entry on June 30, 2020, for purchase of 6,600 common shares for the treasury at $18 per share.

b. Record the entry on September 20, 2020, for sale of 2,400 treasury shares at $21 per share.

c. Record the entry on November 3, 2020, for sale of 1,500 treasury shares at $17 per share.

d. Record the entry on December 15, 2020, for sale of 1,200 treasury shares at $13 per share.

Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order.

e. Determine the number of shares issued and the number of shares outstanding on the following dates (after transactions have been recorded): June 30, 2020; September 20, 2020; November 3, 2020; and December 15, 2020.

Solutions

Expert Solution

Date Account Titles Debit Credit
Jun. 30 Treasury Stock $        118,800
       Cash $         118,800
Sep. 20 Cash $          50,400
       Paid in capital from Treasury Stock $             7,200
       Treasury Stock $           43,200
Nov. 3 Cash $          25,500
Paid in capital from Treasury Stock $             1,500
       Treasury Stock $           27,000
Dec. 15 Cash $          15,600
Paid in capital from Treasury Stock $             5,700
Retained Earnings $                300
       Treasury Stock $           21,600

e.

Jun. 30 Sep. 20 Nov. 3 Dec. 15
Number of Shares Issued 60000 60000 60000 60000
Less Treasury Stock 6600 4200 2700 1500
Number of Shares Outstanding 53400 55800 57300 58500

ekkarill92 answered 1 year ago
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