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On May 3, Zirbal Corporation purchased 6,000 shares of its own stock for $60,000 cash. On...

On May 3, Zirbal Corporation purchased 6,000 shares of its own stock for $60,000 cash. On November 4, Zirbal reissued 1,500 shares of this treasury stock for $16,500. Prepare the May 3 and November 4 journal entries to record Zirbal’s purchase and reissuance of treasury stock.

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Answer #1
Journal entries
Date ACCOUNT TITLES AND EXPLANATIONS DEBIT ($) CREDIT ($)
May 03 Treasury Stock            60,000.00
Cash          60,000.00
(Purchased Treasury Stock )
Nov 04 Cash            16,500.00
Treasury Stock          15,000.00
Paid-in Capital, of Treasury Stock            1,500.00
(To Record the reissue of treasury stock)
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