Question

Saterwine Company began 2017 with 30,000 shares of stock issued. In March, Saterwine repurchased 1,000 of its own shares for $47 per share. In August, it reissued 300 shares of treasury stock for $50 per share. In December, it reissued the remaining 700 shares for $45 per share.
a. Record the repurchase of 1,000 of its shares by Saterwine in March.
b. Record the reissuance of 300 shares in August.
c. Record the reissuance of 700 shares in December.

Answer 1

Transaction	Accounts title	Debit	Credit	Working
[a]	Treasury Stock	$47,000		1000 shares x $ 47
	Cash		$47,000	1000 shares x $ 47
	(to record repurchase)
[b]	Cash	$15,000		300 shares x $ 50
	Treasury Stock		$14,100	300 shares x $ 47
	Paid in Capital from Treasury Stock		$900	300 shares x $ 3
	(to record re issue)
[c]	Cash	$31,500		700 shares x $ 45
	Paid in Capital from Treasury Stock	$900		300 shares x $ 3 available balance
	Retained Earnings	$500		[32900 - 31500 - 900]
	Treasury Stock		$32,900	700 shares x $ 47
	(to record re issue)