Question

Elroy Corporation repurchased 1,400 shares of its own stock for $30 per share. The stock has...

Elroy Corporation repurchased 1,400 shares of its own stock for $30 per share. The stock has a par of $5 per share. A month later, Elroy resold 350 shares of the treasury stock for $38 per share.

Required: What is the balance of the Treasury Stock account after these transactions?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Balance in treasury stock account = $31,500

Working

Working
Treasury stock Purchased $        42,000.00 (1400 x 30)
Less: Treasury stock sold (cost) $      (10,500.00) (350 x 30)
Balance in treasury stock $        31,500.00

Treasury stock are recorded at cost and at the time of sale the gain or loss on sale is credited or debited respectively to paid in capital from treasury stock account.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Rinehart Corporation purchased from its stockholders 4,500 shares of its own previously issued stock for $216,000....
Rinehart Corporation purchased from its stockholders 4,500 shares of its own previously issued stock for $216,000. It later resold 1,500 shares for $51 per share, then 1,500 more shares for $46 per share, and finally 1,500 shares for $40 per share. Prepare journal entries for the purchase of the treasury stock and the three sales of treasury stock.
Rinehart Corporation purchased from its stockholders 5,000 shares of its own previously issued stock for $255,000....
Rinehart Corporation purchased from its stockholders 5,000 shares of its own previously issued stock for $255,000. It later resold 2,000 shares for $54 per share, then 2,000 more shares for $49 per share, and finally 1,000 shares for $43 per share. Instructions Prepare journal entries for the purchase of the treasury stock and the three sales of treasury stock
Rinehart Corporation purchased from its stockholders 5,300 shares of its own previously issued stock for $265,000....
Rinehart Corporation purchased from its stockholders 5,300 shares of its own previously issued stock for $265,000. It later resold 1,875 shares for $53 per share, then 1,875 more shares for $48 per share, and finally 1,550 shares for $42 per share. Prepare journal entries for the purchase of the treasury stock and the three sales of treasury stock. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To record...
Swifty Corporation purchased 1,100 shares of its $10 par value common stock for $72,600 on August...
Swifty Corporation purchased 1,100 shares of its $10 par value common stock for $72,600 on August 1. It will hold these shares in the treasury until resold. On December 1, the corporation sold 660 shares of treasury stock for cash at $75 per share. Journalize the treasury stock transactions. Date Account titles and Explanation Debit Credit _____ _________________________ __________ _________ __________________________ ___________ __________ Date ______ _______________________ _________ ____________   _______________________ _________ ____________ _______________________ _________ ____________
Agler Corporation's balance sheet reported the following: Capital stock outstanding, 6,000 shares, par $30 per share...
Agler Corporation's balance sheet reported the following: Capital stock outstanding, 6,000 shares, par $30 per share $180,000 Paid-in capital in excess of par 83,100 Retained earnings 108,900 The following transactions occurred this year: (a) Purchased 180 shares of capital stock to be held as treasury stock, paying $61 per share. (b) Sold 160 of the shares of treasury stock at $67 per share. (c) Sold the remaining shares of treasury stock at $48 per share. Prepare the journal entry for...
Prior to May 1, Fortune Company has never had any treasury stock transactions. A company repurchased...
Prior to May 1, Fortune Company has never had any treasury stock transactions. A company repurchased 180 shares of its common stock on May 1 for $9,000. On July 1, it reissued 90 of these shares at $52 per share. On August 1, it reissued the remaining treasury shares at $49 per share. What is the balance in the Paid-in Capital, Treasury Stock account on August 2?
) The Wonderland Company issued 10,000 shares (common stock) at OMR 18 each per share. The...
) The Wonderland Company issued 10,000 shares (common stock) at OMR 18 each per share. The par value of the share was OMR 12. Afterwards the company had bought back around 6000 number of shares at OMR 26 each share. These bought back shares were retired by the company later. Closely analyse the below given situations and provide the necessary journal entries: i) The company used par value method and made an issue of 10,000 number of shares.             ii)...
Before Indigo Corporation engages in the treasury stock transactions listed below, its general ledger reflects, among...
Before Indigo Corporation engages in the treasury stock transactions listed below, its general ledger reflects, among others, the following account balances (par value of its stock is $30 per share). Paid-in Capital in Excess of Par—Common Stock Common Stock Retained Earnings $107,700 $244,800 $75,400 Record the treasury stock transactions (given below) under the cost method of handling treasury stock; use the FIFO method for purchase-sale purposes. (Credit account titles are automatically indented when amount is entered. Do not indent manually....
A corporation purchases 5,203 shares of its own $5 par common stock for $23 per share,...
A corporation purchases 5,203 shares of its own $5 par common stock for $23 per share, recording it at cost. What will be the effect on total stockholders' equity? a.increase by $119,669 b.decrease by $93,654 c.decrease by $119,669 d.increase by $93,654 Texas Inc. has 4,155 shares of 4%, $100 par value cumulative preferred stock and 83,552 shares of $1 par value common stock outstanding at December 31. What is the annual dividend on the preferred stock? a.$40.00 per share b.$4,155...
ABC Corporation has 10,000 shares $2 par value common stock issued and outstanding. Record the following...
ABC Corporation has 10,000 shares $2 par value common stock issued and outstanding. Record the following transactions: Purchased 400 shares of its own $2 par value common stock for $ 20 per share. Sold 150 shares of treasury stock purchased in (a) for $22 per share. Sold 100 shares of treasury stock purchased in (a) for $20 per share. Sold the remaining 150 shares of treasury stock purchased in (a) for $16 per share.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT