Prepare journal entries for the following treasury stock transactions. Assume th

Question

Prepare journal entries for the following treasury stock transactions. Assume that all three happen in order when preparing each entry. 2/15/2015 Purchased 48,000 shares for cash at $13.50 per share. 6/6/2015 Sold 12,500 treasury shares for cash at $16.00 per share. 8/30/2015 Sold 9,500 treasury shares for cash at $12.00 per share. Instructions: Prepare journal entries for the above transactions. Date Account Debit Credit Prepare journal entries for the following treasury stock transactions. Assume that all three happen in order when preparing each entry. 2/15/2015 Purchased 48,000 shares for cash at $13.50 per share. 6/6/2015 Sold 12,500 treasury shares for cash at $16.00 per share. 8/30/2015 Sold 9,500 treasury shares for cash at $12.00 per share. Instructions: Prepare journal entries for the above transactions. Date Account Debit Credit

Explanation / Answer

Solution:

Date Journal Debit Credit 2/15/2015 Treasury Stock - ( $ 13.50 * 48,000) 648,000 Cash          648,000 06/06/2015 Cash - ( $ 16 * 12,500) 200,000 Treasury Stock -( $ 13.50 * 12,500)          168,750 Paid in capital from treasury stock 31,250 8/30/2015 Cash - $ 12 * 9,500 114,000 Paid in capital from treasury stock 14,250 Treasury Stock - 9500 * $ 13.50 128,250

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