Question

Garrett Inc. had no treasury stock at the beginning of the year. During February, Garrett purchased 12,600 shares of treasury stock at $23 per share. In May, Garrett sold 4,500 of the treasury shares for $25 per share. In November, Garrett sold the remaining treasury shares for $18 per share.

Required:

Prepare journal entries for the February, May, and November treasury stock transactions.

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY	REVENUE	EXPENSES	NET INCOME
1
2
3
4
5
6
7
8
9

Answer 1

DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY	REVENUE	EXPENSES	NET INCOME
1	Treasury Stock		$289,800.00				-$289,800.00
	Cash (12600*23)			$289,800.00	-$289,800.00
2	Cash (4500*25)		$112,500.00		$112,500.00
	Treasury Stock			$103,500.00			$103,500.00
	Retained Earning			$9,000.00			$9,000.00
3	Cash (8100*18)		$145,800.00		$145,800.00
	Retained Earning		$40,500.00				-$40,500.00
	Treasury Stock (8100*23)			$186,300.00			$186,300.00