In: Accounting
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.
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) |