Regis One Company has outstanding 10,000 shares of $10 par common stock which had been issued at $42 per share. Paid-in Capital from Treasury Shares has a zero balance. Regis One then entered into the following transactions.

Jan 1. Purchased 500 treasury shares at $45 per share.

Jan 2. Purchased 500 treasury shares at $50 per share.

Jan 3. Resold 200 of the treasury shares at $40 per share.

Jan 4. Resold 400 of the treasure shares at $50 per share.

Jan 5. Resold 200 of the treasury shares at $20 per share.

Instruction: Prepare journal entries to record the transactions described above using the cost method and FIFO.

Answer rating: 100% (QA)

FIFO Method Date Account Dr Cr 1st Jan Common Stock 5000 Paid in Capital in excess of Commpn ... View the full answer