Question

Discount World Furniture, Inc. completed the following treasury stock transactions in 2018 A Click the icon to view the transactions) Requirements 1. Joumalize these transactions Explanations are not required 2. How will Discount World Furniture, Inc. report treasury stock on its balance sheet as of December 31, 2018? Requirement 1. Joumalize these transactions, (Record debits first, then credits. Exclude explanations from any jumal entries) Dec 1Purchased 1.500 shares of the company's 51 par valve common stock as treasury stock paying cash of 7 per share Date Accounts Debit Credit evento Puchared 1.500 shares of the company's 5 para con ock treasury ock payah persa 15 Sold 300 shares of the treasury sock for cash 510 persone 20 Sold 900 shares of the treasury stock for cash of 5) per share (Assume the balance in Paid in C o m Treasury Stock Transactions on December 20 is $2.000) $10 per share Dec 15 So 300 shares of the treasury stock for ca Debit Credit Choose from any list or enter any number in the input fields and then continue to the next question Print [Done

Answer 1

Date	Accounts	Debit	Credit
Dec 1	Treasury stock (1500*$7)	$10500
	Cash		$10500
	(To record treasury stock purchased)
Dec 15	Cash (300*$10)	$3000
	Treasury stock (300*$7)		$2100
	Paid in capital from Treasury stock ($3000-2100)		$900
	(To record treasury stock sold)
Dec 20	Cash (900*$3)	$2700
	Paid in capital from Treasury stock	$2000
	Retained earnings ($6300-2700-2000)	$1600
	Treasury stock (900*$7)		$6300
	(To record treasury stock sold)

2) Discount World Furniture, Inc. will report treasury stock below retained earnings on the balance sheet as reduction to total stockholders' equity