On January 15, Capital Corporation purchased 2,000 shares of its own common stock when the stock was trading at $45 On June 15, Capital Corporation reissued 500 of these same shares for $50 per share Required Prepare the journal entries to record the purchase and reissuance of the treasury stock Us...

Jan 15 Treasury Stock 90000 Cash 90000 To record ...

On January 15, Capital Corporation purchased 2,000 shares of its own common stock when the stock was

Question:

On January 15, Capital purchased 2,000 shares of its own when the stock was trading at $45. On June 15, Capital reissued 500 of these same shares for $50 per share.
Required
Prepare the journal entries to record the purchase and reissuance of the treasury stock. Use 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...