Question

Discount Center ?Furniture, Inc. completed the following treasury stock transactions in 2018?:

Requirements 1. Journalize these transactions. Explanations are not required. 2. How will Discount Center ?Furniture, Inc. report treasury stock on its balance sheet as of December ?31, 2018?? Requirement 1. Journalize these transactions. ?(Record debits? first, then credits. Exclude explanations from any journal? entries.) Dec. ?1: Purchased 1,200 shares of the? company's $1 par value common stock as treasury? stock, paying cash of $ 8 per share. Date Accounts Debit Credit Dec. 1 Dec. ?15: Sold 300 shares of the treasury stock for cash of $ 11 per share. Date Accounts Debit Credit Dec. 15 Dec. ?20: Sold 600 shares of the treasury stock for cash of $ 4 per share.? (Assume the balance in? Paid-In Capital from Treasury Stock Transactions on December 20 is $ 1 comma 800?.) Date Accounts Debit Credit Dec. 20

Answer 1

Journal entry :

Date	account & explanation	debit	credit
Dec 1	Treasury Stock (1200*8)	9600
	Cash		9600
	(To record purchase treasury stock)
Dec 15	Cash (300*11)	3300
	Treasury stock (300*8)		2400
	Paid in capital from sale of treasury stock		900
	(To record Sales of treasury stock)
Dec 20	Cash (600*4)	2400
	Paid in capital from sale of treasury stock	900
	Retained earnings	1500
	Treasury stock		4800
	(To record Sale of treasury stock)

Report in balance sheet :

Discount center furniture inc. should deduct stockholder's equity by (300*8) = $2400