please show all calculations, thanks! x company originally issued its 5,000 common shares at $25 per...

please show all calculations, thanks!

x company originally issued its 5,000 common shares at $25 per share and all were still outstanding as of July 1, 2015.

Prepare general journal entries to record the following:

1) July 1, 2015 - Purchased and retired 500 common shares at $23 per share.

2) Aug. 1, 2015 - Purchased and retired another 500 common shares at $30 per share.

Expert Solution

All working forms part of the answer
All journal entries are done sequentially at one place:

Date	General Journal	Debit	Credit	Working
01-Jul-15	Treasury Stock	$ 11,500.00		[500 shares x $ 23]
	Cash		$ 11,500.00	[500 shares x $ 23]
	(shares brought back)

01-Jul-15	Common Stock	$ 12,500.00		[500 shares x $25 par]
	Treasury Stock		$ 11,500.00	[500 shares x $ 23]
	Retained earnings		$ 1,000.00	[500 shares x $ 2]
	(shares retired)

01-Aug-15	Treasury Stock	$ 15,000.00		[500 shares x $ 30]
	Cash		$ 15,000.00	[500 shares x $ 30]
	(shares brought back)

01-Aug-15	Common Stock	$ 12,500.00		[500 shares x $25 par]
	Retained earnings	$ 2,500.00		[500 shares x $ 5]
	Treasury Stock		$ 15,000.00	[500 shares x $ 30]
	(shares retired)

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