Question

On April 28, 2019, Madison purchased 5000 of its common shares issued on June 15, 2018...

On April 28, 2019, Madison purchased 5000 of its common shares issued on June 15, 2018 at $13 per share

The following transactions related to the treasury stock purchased on April 28 took place throughout the years.

A) 8-Jul Sold 500 shares of treasury stock purchased on April 28th for $27 per share.

B) 21-Oct Sold 1000 shares of treasury stock purchased on April 28th for $20,000.

C) 18-Nov Sold 1500 shares of treasury stock purchased on April 28th for 16,500

D) 15- Dec retired the remaining treasury shares purchashed on April 28th.

Business   Accounting   
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Answer #1

Journal entries :

Date account and explanation debit credit
Jul 8 Cash (500*27) 13500
Treasury Stock (500*13) 6500
Paid in capital from sale of treasury Stock 7000
(To record sales of treasury Stock)
Oct 21 Cash 20000
Treasury Stock (1000*13) 13000
Paid in capital from sale of treasury Stock 7000
(To record sale of treasury Stock)
Nov 18 Cash 16500
Paid in capital from sale of treasury Stock 3000
Treasury Stock (1500*13) 19500
(To record sale of treasury Stock)
Dec 15

Note : FOr retirement journal entry Common Stock par value information is not given.

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