Question

Marketplace, Inc. completed the following treasury stock transactions in 2016:

June. 3 Purchased 2,000 shares of the company's $5 par value common stock as treasury stock, paying cash of $15 per share.

June 14 Sold 800 shares of the treasury stock for cash of $20 per share.

Journalize these transactions. Explanations are not required

Answer 1

For the above question, journal entries are provided as below:

Journal Entries

S.No	Particulars	Debit Amount	Credit Amount
1.	Treasury Stock Dr.	30,000
	To Cash		30,000
	(Being treasury stock bought back for 2000 shares at $ 15 per share)
2.	Cahs A/c Dr.	16,000
	To Treasury Stock		12,000
	To Paid in Capital for Treasury Stock		4,000
	(Being treasury stock sold at more than cost at $ 20 per share, Purchased 800 share at $15 per share = 12,000 Sold 800 shares at $ 20 per share = $16,000, the difference of $ 4000 will got to paid in capital for Treasury Stock)