Journal entries for treasury stock transactions. Prepare journal entries under the cost method to record the following

Question:

Journal entries for treasury stock transactions. Prepare journal entries under the cost method to record the following treasury stock transactions of Danos Corporation.

a. Purchases 10,000 shares of its own $10 par value common stock for $30 per share.

b. Issues 6,000 treasury shares to employees under stock option plans. The exercise price is $32 per share. Assume that the market price of the common stock on the exercise date is $35 per share. The stock options had a value of $6 per option when issued, which the firm has already amortized to expense.

c Purchases 7,000 shares of its own common stock for $38 per share.

d. Issues 8,000 treasury shares in the acquisition of land valued at $300,000. Danos Corporation uses a FIFO assumption for reissues of treasury stock.

e. Sells the 3,000 remaining shares of treasury stock for $36 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... 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... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...