On April 2 a corporation purchased for cash 7,000 shares of its own $11 par common...

On April 2 a corporation purchased for cash 7,000 shares of its own $11 par common stock at $27 a share. It sold 4,000 of the treasury shares at $30 a share on June 10. The remaining 3,000 shares were sold on November 10 for $23 a share. a. Journalize the entries to record the purchase (treasury stock is recorded at cost). If an amount box does not require an entry, leave it blank b. Journalize the entries to record the sale of the stock. If an amount box does not require an entry, leave it blank.

Expert Solution

a.

Date	Accounts Titles	Debit	Credit
Apr-02	Treasury Stock	$ 1,89,000		=7000*27
	Cash		$ 1,89,000
	(Purchase of treasury stock)

b.

Date	Accounts Titles	Debit	Credit
Jun-10	Cash	$ 1,20,000		=4000*30
	Treasury Stock		$ 1,08,000	=4000*27
	Paid in Capital from Treasury Stock		$ 12,000	=120000-108000
	(Sale of treasury stock)

Nov-10	Cash	$ 69,000		=3000*23
	Paid in Capital from Treasury Stock	$ 12,000
	Treasury Stock		$ 81,000	=3000*27
	(Sale of treasury stock)

ekkarill92 answered 1 year ago

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