Wonder Ltd. has treasury stock transactions in 20X9 as follows: a. Feb. 27 Purchased 140,000 common...

Wonder Ltd. has treasury stock transactions in 20X9 as follows:

a.	Feb. 27	Purchased 140,000 common shares as treasury stock at $6.50 per share.
b.	March 15	Purchased 64,000 common shares as treasury stock for $5.50 per share.
c.	April 30	Reissued 100,000 shares of treasury stock for $4.25 per share.
d.	May 16	Purchased 54,000 common shares as treasury stock for $6.05 per share.
e.	Nov. 26	Reissued 268,000 shares of treasury stock for $4 per share.

At the end of 20X8, Wonder Limited had reported the following in shareholders’ equity:

Common shares, no-par value; authorized, unlimited shares; issued, 5,800,000 shares, outstanding, 5,500,000 shares	$ 21,117,000
Contributed capital on treasury stock transactions	133,600
Retained earnings	14,840,000
Treasury stock, 300,000 common shares	(1,260,000)

Required:
1. Prepare journal entries for the treasury stock transactions.

2. Calculate the balances in the equity accounts, after the effects of the transactions in requirement 1

Expert Solution

treasury stock

ekkarill92 answered 1 year ago

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Describe the method(s) used to account for treasury stock transactions.

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