On January 1 the Sanders Corporation had 1,000 shares of $10 par common stock authorized and outstanding.

Question:

On January 1 the Sanders had 1,000 shares of $10 par authorized and outstanding. These shares were originally issued at a price of $26 per share. In addition, 500 shares of $50 par preferred stock were outstanding. These were issued at a price of $75 per share. During the year the following stock transactions occurred:
1. March 3: Sanders reacquired 100 shares of its own at a cost of $24 per share.
2. April 27: It sold 25 shares of the stock acquired on March 3 for $30 per share.
3. July 10: It sold 25 shares of the stock acquired on March 3 for $22 per share.
4. October 12: It retired the remaining shares acquired on March 3.

Required
Prepare journal entries to record the treasury stock transactions of Sanders assuming it uses the cost method.

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...