In 2011, Western Transport Company entered into the treasury stock transactions described below. In 2009, Western Transport

Question:

In 2011, Western Transport Company entered into the treasury stock transactions described below. In 2009, Western Transport had issued 140 million shares of its $1 par common stock at $17 per share.

Required:

Prepare the appropriate journal entry for each of the following transactions:

1. On January 23, 2011, Western Transport reacquired 10 million shares at $20 per share.

2. On September 3, 2011, Western Transport sold 1 million treasury shares at $21 per share.

3. On November 4, 2011, Western Transport sold 1 million treasury shares at $18 per share.

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...