Ellison Company's balance sheet shows: Common stock, $20 par Paid-in capital in excess of par Paid-in...

 

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Ellison Company's balance sheet shows: Common stock, $20 par Paid-in capital in excess of par Paid-in capital from treasury stock Retained earnings $3,000,000 1,050,000 0 750,000 Ellison then entered into the following transactions (a) Bought 8,000 shares of its common stock at $29 a share. (b) Sold 4.000 treasury shares at $30 a share. (c) Sold 2,000 shares of treasury stock at $26 a share. 1. Prepare journal entries for the transactions above. 2. Indicate the effect each of the three transactions has on the financial statement (I=Increase, D=Decrease, NE-No effect) Transaction Assets Liabilities Stockholders' Equity Paid-In Capital Retained Earnings Ellison Company's balance sheet shows: Common stock, $20 par Paid-in capital in excess of par Paid-in capital from treasury stock Retained earnings $3,000,000 1,050,000 0 750,000 Ellison then entered into the following transactions (a) Bought 8,000 shares of its common stock at $29 a share. (b) Sold 4.000 treasury shares at $30 a share. (c) Sold 2,000 shares of treasury stock at $26 a share. 1. Prepare journal entries for the transactions above. 2. Indicate the effect each of the three transactions has on the financial statement (I=Increase, D=Decrease, NE-No effect) Transaction Assets Liabilities Stockholders' Equity Paid-In Capital Retained Earnings

Answer rating: 100% (QA)

The transactions are journalized in table below Transactions Parti... View the full answer