Question

On April 2 a corporation purchased for cash 6,000 shares of its own $11 par common stock at $29 per share. It sold 4,000 of the treasury shares at $32 per share on June 10. The remaining 2000 shares were sold on November 10 for $25 per share. a. Journalize the entries to record the purchase (treasury stock is recorded at cost). Apr. 2 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 Nov. 10

Answer 1

DEF Credit ($) Debit ($) $174,000 =6000*29 ou Awn – $174,000 $ 128,000 ДА В Journal Entries Date Account Titles 2-Apr Treasury Stock, Common Cash (To record purchase of own shares) 10-Jun Cash Additional Paid-in Capital, Treasury Stock 8 Treasury Stock, Common 9 (To record sale of treasury stock) 10 10-Nov Cash Additional Paid-in Capital, Treasury 12 Treasury Stock, Common 13 (To record sale of treasury stock) 14 =4000*32 $ 12,000 =(32-29)*4000 $116,000 =4000*29 $ 50,000 $ 8,000 11 =2000*25 =(29-25)*2000 $ 58,000 =2000*29

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