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5 pts Jan. 3
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Answer #1

On 3rd January the Company has purchased its Shares (1800) as treasury Stock. So Journal Entry to be passed for

PURCHASE OF TREASURY STOCK SHARES AS FOLLOWS:

3-01-20XX   Treasury Stock Account..............Dr $12600 (1800*7)

To Cash Account $12600 (1800*7)

(Being Shares have been brought back as treasury stock at $7 per share)

On 30th january ,the company had sold 1000 treasury stock shares at $8per share.So Journal Entry to be passed for

Sale of TREASURY STOCK SHARES AS FOLLOWS

30-01-20XX Cash Account..............Dr $8000

To Treasury Stock Account $7000 (7*1000)

To Paid in Capital From Treasury Stock $1000 (8-7)*1000

(being Treasury stock shares have been resold at $8 per share)

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