On April 2 a corporation purchased for cash 5,000 shares of its own $15 par common stock at $26 per share. It sold 3,000 of the treasury shares at $29 per share on June 10. The remaining 2000 shares were sold on November 10 for $22 per share.

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a.  Journalize the entries to record the purchase (treasury stock is recorded at cost).

Apr. 2	Accounts PayableCashCommon StockPaid-In Capital from Sale of Treasury StockTreasury StockTreasury Stock	Treasury Stock
	Accounts PayableCashCommon StockPaid-In Capital from Sale of Treasury StockTreasury StockCash		Cash

 

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b.  Journalize the entries to record the sale of the stock. If an amount box does not require an entry, leave it blank.

Jun. 10	CashCommon StockPaid-In Capital from Sale of Treasury StockPreferred StockTreasury StockCash	Cash	Cash
	CashCommon StockPreferred StockRetained EarningsTreasury StockTreasury Stock	Treasury Stock	Treasury Stock
	CashCommon StockPaid-In Capital from Sale of Treasury StockPaid-In Capital in Excess of Par-Common StockPreferred StockPaid-In Capital in Excess of Par-Common Stock	Paid-In Capital in Excess of Par-Common Stock	Paid-In Capital in Excess of Par-Common Stock
Nov. 10	Accounts PayableCashCommon StockPreferred StockTreasury StockCash	Cash	Cash
	Common StockPaid-In Capital from Sale of Treasury StockPaid-In Capital in Excess of Par-Common StockPreferred StockTreasury StockPaid-In Capital in Excess of Par-Common Stock	Paid-In Capital in Excess of Par-Common Stock	Paid-In Capital in Excess of Par-Common Stock
	CashCommon StockPaid-In Capital from Sale of Treasury StockPreferred StockTreasury StockTreasury Stock	Treasury Stock	Treasury Stock

 

Answer rating: 100% (QA)

Solution The journal entries Apr 2 Debit Treasury Stock ... View the full answer