On April 2nd a corporation purchased for cash 5,000 shares of its own $10 par common stock

Question:

On April 2nd a purchased for cash 5,000 shares of its own $10 par at $16 per share. They sold 3,000 of the treasury shares at $19 per share on June 15th. The remaining 2,000 shares were sold on November 10th for $12 per share.
(a) Journalize the entries to record the purchase (treasury stock is recorded at cost).
(b) Journalize the entries to record the sale of the stock
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...

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 60% (10 reviews)

April 2 nd Debit Credit a Treasury stock ...View the full answer

Answered By

Parvesh Kumar

I am an experienced Mathematics and Statistics tutor with 10 years of experience teaching students and working professionals. I love teaching students who are passionate to learn subjects or wants to understand any mathematics and statistics concept at graduation or master’s level. I have worked with thousands of students in my teaching career. I have helped students deal with difficult topics and subjects like Calculus, Algebra, Discrete Mathematics, Complex analysis, Graph theory, Hypothesis testing, Probability, Statistical Inference and more. After learning from me, students have found Mathematics and Statistics not dull but a fun subject. I can handle almost all curriculum of mathematics. I did B.Sc (mathematics), M.Sc (mathematics), M.Tech (IT) and am also Gate (CS) qualified. I have worked in various college and school and also provided online tutoring to American and Canadian students. I look forward to discussing with you and make learning a meaningful and purposeful

5.00+ 4+ Reviews 10+ Question Solved

Related Book For book-img-for-question