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In 2018, Poe’s Products completed the treasury stock transactions described below. January 2: Reacquired 12 million...
In 2018, Poe’s Products completed the treasury stock transactions described below.
January 2: Reacquired 12 million shares at $18 per share.
February 15: Sold 4 million shares at $25 per share.
September 20: Sold 4 million treasury shares at $20 per share.
Poe’s Products had issued 60 million shares of its $1 par common stock for $20 several years ago.
Prepare any necessary journal entries to record the above transactions. Show all computations.
Solutions
Expert Solution
| Date | Accounting titles & Explanations | Debit | Credit | ||||
| 2-Jan | Treasury stock | 216,000,000 | |||||
| cash | 216,000,000 | ||||||
| (12m*18) | |||||||
| 15-Feb | Cash | (4*1000000*25) | 100,000,000 | ||||
| Treasury stock (4*1000000*18) | 72,000,000 | ||||||
| paid in capital in excess -TS | 28,000,000 | ||||||
| 20-Sep | Cash | (4*1000000*20) | 80,000,000 | ||||
| Treasury stock (4*1000000*18) | 72,000,000 | ||||||
| paid in capital in excess -TS | 8,000,000 | ||||||
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