Question

	Edmond Company had the following transactions during 2019.
1-Jan	Issued common stock for cash.
	Number of shares issued	30,000
	Par value per share	$                 2
	Market price per share	$                 5
1-Mar	The company purchased shares of its common stock for the treasury.
	Number of shares purchased	4,000
	Market price per share	$                 8
1-Jun	The company sells some shares of its Treasury Stock
	Number of shares sold	1,000
	Market price per share	$              10
1-Sep	The company sells some shares of its Treasury Stock
	Number of shares sold	2,000
	Market price per share	$                 6
	INSTRUCTIONS: Journalize these transactions.

Answer 1

Account titles and explanation Credit Debit Date Cash (30,000 x$ 5) Common stock (30,000 x $ 2) Paid in capital in excess of par Common stock |(to record sale of common stock) 150,000 Jan 1 60,000 90,000 Treasury stock (4,000 x $ 8) Mar 1 32,000 Cash 32,000 (to record purchase of treasury stock) Cash (1,000 x $10) Treasury stock (1,000 x $ 8) Jun 1 10,000 8,000 Paid in capital Treasury stock 2,000 (to record sale of treasury stock) Cash (2,000 x $ 6) Paid in capital Treasury stock Retained earnings Treasury stock (2,000 x $ 8) (to record sale of treasury stock) Sep 1 12,000 2,000 2,000 16,000