On April 2 a corporation purchased for cash 5,000 shares of its own $12 par common...

On April 2 a corporation purchased for cash 5,000 shares of its own $12 par common stock at $29 per share. It sold 3,000 of the treasury shares at $32 per share on June 10. The remaining 2000 shares were sold on November 10 for $25 per share.

a. Journalize the entries to record the purchase (treasury stock is recorded at cost).

Apr. 2

b. Journalize the entries to record the sale of the stock. If an amount box does not require an entry, leave it blank.

Jun. 10


Nov. 10

Expert Solution

All working forms part of the answer
Requirement ‘a’

Date	Accounts title	Debit	Credit	Working
Apr-02	Treasury Stock	$ 145,000.00		[5,000 shares x $ 29 per share]
	Cash		$ 145,000.00	[5,000 shares x $ 29 per share]
	(Own shares purchased as Treasury Stock)

Requirement ‘b’

Date	Accounts title	Debit	Credit	Working
Jun-10	Cash	$ 96,000.00		[3,000 shares x $ 32 per share]
	Treasury Stock		$ 87,000.00	[3,000 shares x $ 29 per share cost]
	Paid In Capital - Treasury Stock		$ 9,000.00	[3,000 shares x $ 3 (32-29)]
	(Shares re - issued)

Nov-10	Cash	$ 50,000.00		[2,000 shares x $ 25 per share]
	Paid In Capital - Treasury Stock	$ 8,000.00		[2,000 shares x $ 4 (29-25)]
	Treasury Stock		$ 58,000.00	[2,000 shares x $ 29 per share cost]
	(Shares re - issued)

ekkarill92 answered 2 years ago

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