Question

The original sale of the $50 par value common shares of Gray Company was recorded as follows: 256,500 Cash Common Stock 225,000 Paid-in Capital in Excess of Par 31,500 Transactions: (a) Bought 380 shares of common stock as treasury shares at $61. Sold 100 shares of treasury stock at $59. (b) (c) Sold 50 treasury shares at $67. Record the treasury stock transactions (given above) under 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 O for the amounts.) No. Account Titles and Explanation Debit Credit (a) (b) (c)

Answer 1

Debit $23,180 No Accounts Title Treasury Stock Cash Cash Additional paid in Capital - Treasury Stock Treasury Stock Cash Treasury Stock Additional paid in Capital - Treasury Stock $ 5,900 $ 200 Credit 380*61 $23,180 100*59 100*(61-59) $ 6,100 100*61 50*67 $ 3,050 50*61 $ 300 50*67-61) $ 3,350