Question

California surf clothing company issues 1,000 shares of $1 par value common stock at $27 per share. Later in the year, the company decides to repurchase 100 shares at a cost of $30 per share. Record the purchase of treasury stock.

record the transaction if california surf reissues the 100 shares of treasury stock at $32 per share

Answer 1

SOLUTION :
	Transaction	General Journal	Debit	Credit
	1	Cash (1000 Shares X $ 27)	$27,000
		Common Stock		$1,000
		Addittional paid in Capital - Common Stock		$26,000
	2	Treasury Stock (100 Shares X $ 30)	$3,000
		Cash		$3,000
	3	Cash (100 Shares X $ 32)	$3,200
		Treasury Stock		$3,000
		Addittional paid in Capital in excess of par - Treasury Stock		$200