Question

Knowledge Check 01 Prior to June 1, Sandler Company had no treasury stock transactions. Then, on June 1, the company paid $5,000 to purchase 100 shares of its common stock on the open market. Complete the necessary journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debitor credit columns View transaction list Journal entry worksheet Prior to June 1, Sandler Company had no treasury stock transactions. Then, on June 1, the company paid $5,000 to purchase 100 shares of its common stock on the open market. Note: Enter debits before credits Date General Journal Debit Credit June 01

Answer 1

solution- Journal Entry Credit ($) Date June ol Debit(s) $5,000 . General Journal Treasury stock Cash (Being treasury stock is Purchased) $5,000 Explanationis, No of shares purchased a 100 shares . Treasury stock purchases (amount) - $5,000 par value of share = $5,000 100 .. :$50 per sheve.

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