Question

Can you please show me in T-account format this solution? It would help my understanding out so much. I have a final exam next week. My teacher already left you a brief solution.

Coy, Inc. initially issued 200,000 shares of $1 par stock for $1,000,000 in 2016. In 2017, the company repurchased 20,000 shares for $200,000. In X 2018, 10,000 of the repurchased shares were resold for $160,000. In its balance sheet dated December 31, 2018, Coy, Inc.'s treasury stock account shows a balance of Selected Answer: $40,000. Answers: $100,000. $200,000 $40,000 $0. Response A treasury stock account is created when a company reacquires its own stock as treasury stock. The full purchase price (cost) is Feedback: debited to Treasury Stock. When treasury stock is sold, the Treasury Stock account is credited for the cost per share, with an additional credit to Paid-in Capital, Treasury Stock (or Paid-in Capital-Repurchased Shares), if the sale price exceeds the reacquisition price. The 2017 repurchase is accounted for with a debit to Treasury Stock for $200,000. When half of the treasury stock is resold, $100,000 is credited to Treasury Stock and $60,000 is credited to Paid-In Capital, Treasury Stock. The balance in the Treasury Stock account is $200,000 $100,000 $100,000

Answer 1

Treasury stock
	To Op. Balance	$0	2018	By Cash	$1,00,000
2017	To Cash	$2,00,000
			2018	By Closing Balnce	$1,00,000
	Here are the Journal entries for better understanding:
	Date	Accounts and explanation	Debit	Credit
	2017	Treasury Stock(10,000*$10)	$2,00,000
		Cash		$2,00,000
	2018	Cash	$1,60,000
		Treasury Stock(10,000*$10)		$1,00,000
		Paid in capital in excess of Treasury Stock		$60,000