Question

On April 2 a corporation purchased for cash 7,000 shares of its own $13 par common stock at $28 per share. It sold 4,000 of the treasury shares at $31 per share on June 10. The remaining 3000 shares were sold on November 10 for $24 per share.

a. Journalize the entries to record the purchase (treasury stock is recorded at cost).

Apr. 2

b. Journalize the entries to record the sale of the stock. If an amount box does not require an entry, leave it blank.

Jun. 10
Nov. 10

Answer 1

Requirement a:

Date	Description	Debit	Credit
Apr.02	Treasury Stock [7000*28]	$ 196,000
	Cash		$ 196,000
	(To record Treasury Stock purchased)

Requirement b:

Date	Description	Debit	Credit
Jun.10	Cash [4000*31]	$ 124,000
	Treasury Stock [4000*28]		$ 112,000
	Additional Paid-In Cap - Treasury Stock		$   12,000
	(To record treasury stock resold)
Nov.10	Cash [3000*24]	$   72,000
	Additional Paid-In Cap - Treasury Stock	$   12,000
	Treasury Stock [3000*28]		$   84,000
	(To record treasury stock resold)