Question

During the year the following selected transactions affecting stockholders' equity occurred for Orlando Corporation:

a.	Apr.	1		Repurchased 310 shares of the company's own common stock at $24 cash per share.
b.	Jun.	14		Sold 110 of the shares purchased on April 1 for $29 cash per share.
c.	Sept.	1		Sold 100 of the shares purchased on April 1 for $19 cash per share.

Required:

1. Prepare journal entries for each of the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2 3 Repurchased 310 shares of the company's own common stock at $24 cash per share. Note: Enter debits before credits. Transaction General Journal Debit Credit

Answer 1

Journal Entries

No.	Date	Particulars	Debit ($)	Credit ($)	Calculations
a	April 1	Treasury stock, Common stock	$3,100		310 x 10 = 3100
		Paid-in capital, Treasury stock	$4,340		310 x 14 = 4340
		To cash		$7,440	310 x 24 = 7440
		(Being repurchased 310 shares of the companies own common stock @24 per share in cash)
b	June 14	Cash	$3,190		110 x 29 = 3190
		To Treasury stock, common stock		$1,100	110 x 10 = 1100
		To Paid-in capital, Treasury stock		$2,090	110 x 19 = 2090
		(Being sold 110 shares of Treasury stock at $29 per share for cash)
c	September 1	Cash	$1,900		100 x 19 = 1900
		To Treasury stock, common stock		$1,000	100 x 10 = 1000
		To Paid-in capital, Treasury stock		$900	100 x 9 = 900
		(Being sold 100 shares of Treasury stock at $19 per share for cash)