Instructions
Prepare the journal entries for each of the situations above.
E13.7 (LO 2) On January 1, 2020, the stockholders' equity section of Newlin Corporation shows common stock ($5 par value) $1,500,000; paid-in capital in excess of par $1,000,000; and retained earnings $1,200,000. During the year, the following treasury stock transactions occurred.
Journalize treasury stock transactions.
Mar. 1 Purchased 50,000 shares for cash at $15 per share.
July 1 Sold 10,000 treasury shares for cash at $17 per share.
Sept. 1 Sold 8,000 treasury shares for cash at $14 per share.
| Date | Account | Debit | Credit |
| Mar 1 | Treasury stock | 750,000 | |
| Cash | 750,000 | ||
| (50,000*15) | |||
| July 1 | Cash (10,000*17) | 170,000 | |
| Paid in capital in excess of par - Treasury stock | 20,000 | ||
| Treasury stock (10,000*15) | 150,000 | ||
| Sep 1 | Cash (8,000*14) | 112,000 | |
| Paid in capital in excess of par - Treasury stock | 8,000 | ||
| Treasury stock (8,000*15) | 120,000 | ||
On January 1, 2020, the stockholders' equity section of Newlin Corporation shows common stock ($5 par value) $1,500,000