Question

Larkspur Company had the following stockholders' equity as of January 1, 2017. Common stock, $5 par value, 18,400 shares issued Paid-in capital in excess of par-common stock Retained earnings Total stockholders' equity $92,000 295,000 313,000 $700,000 During 2017, the following transactions occurred. Feb. 1 Mar. 1 Mar. 18 Apr. 22 Larkspur repurchased 1,970 shares of treasury stock at a price of $20 per share. 770 shares of treasury stock repurchased above were reissued at $18 per share. 510 shares of treasury stock repurchased above were reissued at $15 per share. 560 shares of treasury stock repurchased above were reissued at $21 per share. Your answer is partially correct. Try again. Prepare the journal entries to record the treasury stock transactions in 2017, assuming Larkspur uses the cost method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) con method credit countertes are autor Date Account Titles and Explanation Debit Credit Feb. 1 Treasury Stock 39400 T Cash T 39400 Mar. 1 Cash 13860

Answer 1

Credit Date Accounts Titles and Explaination Feb-01 Treasury Stock Cash Debit $ 39,400.00 Larkspur Company Stockholders Equity April 30, 2017. $ 39,400,00 (To Record Repurchase) Mar-01 Cash Retained Earnings Treasury Stock $ 13,860.00 $ 1,540,00 Common Stock Paid in Capital - In excess of par - Common Stock Paid in Capital from Treasury stock Total Paid in Capital Retained Earnings $ $ $ $ $ $ 92,000.00 2,95,000.00 560,00 3,87,560,00 3,08,910.00 6,96,470.00 $ 15,400.00 (To Record re issue) Less : Treasury Stock Total Stockholders Equity $ 2,600.00 $ 6,93,870.00 Mar-18 Cash Retained Earnings Treasury Stock $ 7,650,00 $ 2,550.00 $ 10,200.00 (To Record re issue) $ 11,760,00 Apr-22 Cash Paid in capital from treasury stock Treasury Stock Working Note : Statement of Retained Earnings ; Beginning Balance Less : Re issue of shares Less : Re issue of shares Ending Balance $ 560.00 $ 11,200.00 $ 3,13,000.00 $ (1,540.00) $ (2,550.00) $ 3,08,910.00 (To Record re issue) Treasury Stock : Beginning Balance Feb 1 Purchase : Less: Mar 1 sale Less : Mar 18 sale Less : Apr 22 sale $ $ $ $ $ 39,400.00 (15,400,00) (10,200,00) (11,200,00) 2,600.00