Lawn Spray Inc. develops and produces spraying equipment for
lawn maintenance and industrial uses. On January 31 of the current
year, Lawn Spray Inc. reacquired 50,000 shares of its common stock
at $51 per share. On June 14, 24,000 of the reacquired shares were
sold at $60 per share, and on November 23, 18,000 of the reacquired
shares were sold at $56.
Required:
A. |
Journalize the transactions of
January 31, June 14, and November 23. Refer to the Chart of
Accounts for exact wording of account titles. |
B. |
What is the balance in
Paid-In Capital from Sale of Treasury Stock on December 31
of the current year? |
C. |
What is the balance in Treasury
Stock on December 31 of the current year? |
D. |
How will the balance in
Treasury Stock be reported on the balance sheet?
CHART
OF ACCOUNTS |
Lawn
Spray Inc. |
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A. Journalize the transactions of January 31, June 14, and
November 23. Refer to the Chart of Accounts for exact wording of
account titles.
PAGE 10
JOURNAL
ACCOUNTING EQUATION
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DATE |
DESCRIPTION |
POST.
REF. |
DEBIT |
CREDIT |
ASSETS |
LIABILITIES |
EQUITY |
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B. What is the balance in Paid-In Capital from Sale of
Treasury Stock on December 31 of the current year?
C. What is the balance in Treasury Stock on December 31 of the
current year?
D. How will the balance in Treasury Stock be reported on the
balance sheet?
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