Question

1. On January 1, 2017, the stockholders’ equity section of horton Corporation shows Common stock ($5 par value) $1,500,000 paid-in capital in excess of par value $1,000,000; and retained earnings $1,200,000. During the year, the following transactions occurred.

Mar.           1   Purchased 30,000 shares for cash at $22 per share.

July            1   Sold 6,000 treasury shares for cash at $27 per share.

Oct.           1   Sold 5,000 treasury shares for cash at $19 per share.

Dec            1    Sold 3,000 treasury share for cash at $10 per share.

Answer 1

Journal entries :-

Date	Particulars	Debit ($)	Credit ($)
March 1	treasury stock	660000
	To cash		660000
	Being purchased treasury stock
July 1	cash	162000
	To treasury stock		132000
	To paid in capital in excess of par value		30000
	Being treasury stock sold
October 1	cash	9500
	Paid in capital in excess of par value		132000
	To treasury stock		30000
	Being treasury stock sold
December 1	cash	30000
	Paid in capital in excess of par value	36000
	To treasury stock		66000
	Being treasury stock sold

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