Question

FULL SCREEN PRINTER VERSION BACK NEXT Exercise 11-9 On January 1, 2019, the stockholders' equity section of Matlock, Inc. shows common stock (54 par value) $1,200,000; pad in capital in excess of par $1,050,000; and retained earnings $1,240,000 During the year, the following treasury stock transactions occurred Mar 1 Purchased 51,000 shares for cash at $15 per share July 1 Sold 11,000 treasury shares for cash at $17 per share Sept. 1 Sold 9,000 treasury shares for cash at $14 per share. Journalize the treasury stock transactions. (Record journal entries in the order presented in the problem. 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 for the amounts.) Date Account Titles and Explanation Credit

Answer 1

SOLUTION:

PART-1
Date	Particulars	Debit	Credit
Mar-01	Treasury Stock (51000 * $15)	765,000
	Cash		765,000
Jul-01	Cash (11,000 * 17)	187,000
	Treasury Stock (11,000 * 15)		165,000
	Paid-in Capital from Treasury Stock		22,000
Sep-01	Cash (9000 *$14)	126,000
	Paid-in Capital from Treasury Stock	9,000
	Treasury Stock (9000 *$15)		135,000
PART-2
Date	Particulars	Debit	Credit
	Cash (9000 *$12)	108,000
	Paid-in Capital from Treasury Stock	22,000
	Retained Earnings	5,000
	Treasury Stock (9000 *$15)		135,000