Question

REQUIRED: Journalize the following transactions for Debon Ltd. during 2017: Feb 2 Issued 10,000 common shares at $15.00 per share Apr 10 Repurchased 2,000 shares at $13.00 per share (average issue price $14) June 30 Repurchased 2,000 shares at $19.00 per share (average issue price $14).

Answer 1

Journal Entries are as follows:

Date	Account and Explanation	Debit($)	Credit($)
Feb 2,2017	Cash (10,000*$15)	150,000
	Common Stock		150,000
	(Common Stock issued for cash)
April 10,2017	Treasury Stock(2,000*$14)	28,000
	Paid in Capital from Treasury Stock(2,000*$1)		2,000
	Cash (2,000*$13)		26,000
	(Recorded the repurchase of common stock)
June 30,2017	Treasury Stock(2,000*$14)	28,000
	Paid in Capital from Treasury Stock(2,000*$5)	10,000
	Cash (2,000*$19)		38,000
	(Recorded the repurchase of common stock)