On January 3, 2011, Tommyboy Corporation repurchases 250,000 shares of its outstanding common stock for $18 per

Question:

On January 3, 2011, Tommyboy repurchases 250,000 shares of its outstanding for $18 per share. On May 1, 2011, Tommyboy sells 80,500 shares of treasury stock for $12 per share. On October 1, 2011, Tommyboy sells 40,000 shares of its treasury stock for $31 per share.

Required:
1. Prepare the journal entries to record these transactions.
2. How will these transactions affect Tommyboy’s 2011 income statement? Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...