Question

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 purchase from stockholders.)

(To record sales of shares at $53 per share.)

(To record sales of shares at $48 per share.)

(To record sale of shares at $42 per share.)
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Answer #1

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
Treasury Stock ( 265000
Cash 265000

(To record purchase from stockholders.)
Cash (1875*53) 99375
Treasury Stock 93750
Paid in capital from sale of treasury Stock 5625

(To record sales of shares at $53 per share.)
Cash (1875*48) 90000
Paid in capital from sale of treasury Stock 3750
Treasury Stock 93750

(To record sales of shares at $48 per share.)
Cash (1550*42) 65100
Paid in capital from sale of treasury Stock 1875

Retained earnings

 10525
Treasury Stock (1550*50) 77500

(To record sale of shares at $42 per share.)
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