Question

Sage Inc. has outstanding 12,800 shares of $10 par value common stock. On July 1, 2020, Sage reacquired 100 shares at $86 per share. On September 1, Sage reissued 61 shares at $94 per share. On November 1, Sage reissued 39 shares at $83 per share.

Prepare Sage’s journal entries to record these transactions using the cost method. (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 0 for the amounts.)

Answer 1

Date	Account titles and Explanations	Debit	Credit
July 1	Treasury stock ( 100 Shares x $ 86 )	$ 8,600
	Cash		$ 8,600
	(To record the reaquistion of Shares )
September 1	Cash (61 shares x $ 94 )	$ 5,734
	Treasury stock                (61 shares x $ 86)		$ 5,246
	Paid in Capital from sale of Treasury stock - Bal. Fig.		$ 488
	(To record the reissue of Shares)
November 1	Cash (39 shares x $ 83 )	$ 3,237
	Paid in capital from Sale of Treasury stock - Bal. Fig.	$ 117
	Treasury stock                 (39 shares x $ 86 )		$ 3,354
	(To record the reissue of Shares)