Question

Exercise 11-7 Skysong, Inc. purchased from its stockholders 5,600 shares of its own previously issued stock for $291,200. It later resold 1,825 shares for $55 per share, then 1,825 more shares for $50 per share, and finally 1,950 shares for $44 per share. Prepare journal entries for the purchase of the treasury stock and the three sales of treasury stock. (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 o for the amounts.) Account Titles and Explanation Debit Credit (To record purchase from stockholders.) (To record sales of shares at $55 per share.) (To record sales of shares at $50 per share.) To pocond cale of charor att no charo

Answer 1

Account Titles and Explanation	Debit	Credit
Treasury Stock	$291,200
Cash		$291,200
(To record purchase of treasury stock)
Cash	$100,375		(1,825 x $55)
Treasury Stock		$94,900	(1,825 x $52)
Paid-in Capital - Treasury Stock		$5,475	(1,400 x $3)
(To record sale of treasury stock)
Cash	$91,250		(1,825 x $50)
Paid-in Capital - Treasury Stock	$3,650		(1,825 x $2)
Treasury Stock		$94,900	(1,825 x $52)
(To record sale of treasury stock)
Cash	$85,800		(1,950 x $44)
Paid-in Capital - Treasury Stock	$1,825		Available
Retained Earnings	$13,775		Balance
Treasury Stock		$101,400	(1,950 x $52)
(To record sale of treasury stock)