Question

Sprinkle Inc. has outstanding 10,000 shares of $10 par value common stock. On July 1, 2017, Sprinkle reacquired 100 shares at $87 per share. On September 1, Sprinkle reissued 60 shares at $90 per share. On November 1, Sprinkle reissued 40 shares at $83 per share.

Prepare Sprinkle’s journal entries to record these transactions using the cost method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
7/1/17
9/1/17
11/1/17

Answer 1

Journal Entries:

Date	Account Titles and Explanation	Debit	Credit
7/1/17.	Treasury Stock (100 shares * $87 per share)	$8,700
	Cash		$8,700
	(To record the reacquired 100 shares)
9/1/17.	Cash (60 shares * $90 per share)	$5,400
	Treasury Stock (60 shares * $87 per share)		$5,220
	Paid-in Capital - Treasury Stock ($5,400 - $5,220)		$180
	(To record the reissue of treasury stock)
11/1/17.	Cash (40 shares * $83 per share)	$3,320
	Paid-in Capital - Treasury Stock ($87 - $83 = $4 * 40 shares)	$160
	Treasury Stock (40 shares * $87 per share)		$3,480
	(To record the reissue of treasury stock)