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Cornerstone Exercise 10-28 (Algorithmic) Accounting for Treasury Stock On February 1, 2019, Destiny Enterprise repurchases 77
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Journal Entries
Date Account Titles and Explanations Debit Credit
2019
Feb. 1 Treasury Stock (770 shares * $9 per share) $6,930
Cash $6,930
(To record the purchase of treasury shares)
Mar. 1 Cash (320 shares * $12 per share) $3,840
   Treasury Stock (320 shares * $9 per share) $2,880
   Additional Paid in Capital - Treasury Stock ($12 - $9 = $3 * 320 shares) $960
(To record the reissue of treasury shares)
May. 1 Cash (450 shares * $6 per share) $2,700
Additional Paid I Capital - Treasury Stock $960
Retained Earnings ($4,050 - $2,700 - $960) $390
   Treasury Stock (450 shares * $9 per share) $4,050
(To record the reissue of treasury shares)
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