1) The December 31, 2024, balance sheet of Garcia Company included the following: Common stock, 20...

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1) The December 31, 2024, balance sheet of Garcia Company included the following: Common stock, 20 million shares outstanding at $1 par Paid-in capital-excess of par Retained earnings $20,000,000 100,000,000 115,000,000 Garcia completed the following transactions in 2024 relating to treasury stock: March 17: Reacquired 5 million shares at $10. May 17: Reacquired 3 million shares at $9. August 10: Sold 6 million shares at $12. Required: Assuming Garcia uses the cost method, prepare journal entries to record the foregoing transactions on a FIFO basis. (5 pts) 1) The December 31, 2024, balance sheet of Garcia Company included the following: Common stock, 20 million shares outstanding at $1 par Paid-in capital-excess of par Retained earnings $20,000,000 100,000,000 115,000,000 Garcia completed the following transactions in 2024 relating to treasury stock: March 17: Reacquired 5 million shares at $10. May 17: Reacquired 3 million shares at $9. August 10: Sold 6 million shares at $12. Required: Assuming Garcia uses the cost method, prepare journal entries to record the foregoing transactions on a FIFO basis. (5 pts)

Answer rating: 100% (QA)

To record the transactions relating to treasury stock on a FIFO FirstIn FirstOut basis we need to tr... View the full answer