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
______ _______________________ _________ ____________
_______________________ _________ ____________
_______________________ _________ ____________
Journal Entries:
Date |
Account Title & Explanation |
Debit |
Credit |
August 01 |
Treasury stock (1100 x $10) |
$11000 |
|
Paid in Capital – Treasury Stock |
$61600 |
||
Cash Account |
$72600 |
||
(To record purchase of shares) |
|||
December 31 |
Cash Account (660 x $75) |
$49500 |
|
Treasury Stock (660 x $10) |
$6600 |
||
Paid in Capital – Treasury stock |
$42900 |
||
(To record resale of Treasury stock) |
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