Question

Metlock Inc. has outstanding 12,800 shares of $10 par value common stock. On July 1, 2017, Metlock reacquired 100 shares at $86 per share. On September 1, Metlock reissued 61 shares at $94 per share. On November 1, Metlock reissued 39 shares at $83 per share. Prepare Metlock’s journal entries to record these transactions using the cost method.

Answer 1

Solution:

Journal Entries - Metlock Inc.
Date	Particulars	Debit	Credit
1-Jul-17	Treasury Stock Dr	$8,600.00
	To Cash (100 *$86)		$8,600.00
	(To record purchase of own stock)
1-Sep-17	Cash Dr (61*$94)	$5,734.00
	To Treasury Stock (61*$86)		$5,246.00
	To Additional paid in capital (61*$8)		$488.00
	(To record reissue of treasury stock)
1-Nov-17	Cash Dr (39*$83)	$3,237.00
	Additional paid in capital Dr (39*$3)	$117.00
	To Treasury Stock (39*$86)		$3,354.00
	(To record reissue of treasury stock)