Exercise 12-10 Treasury Stock Transactions Including Retirement The following stock transactions of Carmel Corporation represent all...

Exercise 12-10
Treasury Stock Transactions Including Retirement

The following stock transactions of Carmel Corporation represent all its treasury stock transactions for the year:

June	1	Purchased 1,000 shares of its own $30 par value common stock for $70 per share, the current market price.
	10	Sold 250 shares of treasury stock purchased on June 1 for $80 per share.
	20	Sold 350 shares of treasury stock purchased on June 1 for $58 per share.
	30	Retired the remaining shares purchased on June 1. The original issue price was $42 per share.

Record Carmel Corporation's stock transactions using T accounts. If an amount is zero, enter "0".

Cash
SelectJune 1June 10June 30Item 1		SelectJune 1June 10June 30Item 3
SelectJune 1June 20June 30Item 5
Bal.

Treasury Stock, Common
SelectJune 1June 20June 30Item 8		SelectJune 1June 10Item 10
		SelectJune 1June 20Item 12
		SelectJune 1June 30Item 14
Bal.

Retained Earnings
SelectJune 1June 10June 20Item 17
SelectJune 1June 10June 30Item 19
Bal.

Paid-in Capital, Treasury Stock
SelectJune 1June 10June 20June 30Item 22		SelectJune 1June 10June 20June 30Item 24
		Bal.

Common Stock
SelectJune 1June 10June 20June 30Item 27
Bal.

Additional Paid-in Capital
SelectJune 1June 10June 20June 30Item 30
Bal.

Solutions

Expert Solution

Cash
		1-Jun	$70,000
10-Jun	17500
	(250*70)
20-Jun	24500

	(1000-600)*70
Bal.

Treasury Stock, Common
1-Jun	70000	10-Jun	17500
		20-Jun	24500
		30-Jun	28000
Bal.	0

Retained Earnings
20-Jun	1700
30-Jun	11200
Bal.

Paid-in Capital, Treasury Stock
20-Jun	2500	10-Jun	2500
		Bal.	0

Common Stock
30-Jun	12000
Bal.

Additional Paid-in Capital
30-Jun	4800
Bal.


Entries
1-Jun	Treasury stock (1000*70)	$70,000
	Cash		$70,000

b
10-Jun	Cash (250*80)	20000
	Additional paid in capital-Treasury stock		2500
	Treasury stock (250*70)		17500

c	Cash (350*58)	20300
20-Jun	Retained Earnings (bal fig)	1700
	Additional paid in capital-Treasury stock	2500
	Treasury stock (350*70)		24500

d
30-Jun	Common stock (400*30)	12000
	Additional paid in capital in excess-Common stock (400*12)	4800
	Retained Earnings (bal fig)	11200
	Treasury stock (400*70)		28000

ekkarill92 answered 1 year ago

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