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Problem 15-2 (Part Level Submission) Whispering Company had the following stockh

ID: 2431724 • Letter: P

Question

Problem 15-2 (Part Level Submission) Whispering Company had the following stockholders' equity as of January 1, 2017 Common stock, $5 par value, 18,800 shares issued Paid-in capital in excess of par-common stock Retained earnings $94,000 301,000 322,000 $717,000 Total stockholders' equity During 2017, the following transactions occurred. Feb. 1 Mar. 1 Mar. 18 Apr. 22 Whispering repurchased 1,860 shares of treasury stock at a price of $17 per share 790 shares of treasury stock repurchased above were reissued at $15 per share 450 shares of treasury stock repurchased above were reissued at $13 per share 520 shares of treasury stock repurchased above were reissued at $18 per share Prepare the journal entries to record the treasury stock transactions in 2017, assuming Whispering uses the cost method. (Credit account tities are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Mar. 1 Mar. 18

Explanation / Answer

Date

General Journal

Debit

Credit

Feb 1

Treasury Stock ($17 x 1860

31620

Cash

31620

March 1

Cash($15 x 790)

11850

Retained Earnings($2 x 790)

1580

Treasury Stock ($17 x 790)

13430

March 18

Cash($13 x 450)

5850

Retained Earnings($4 x 450)

1800

Treasury Stock ($17 x 450)

7650

April 22

Cash($18 x 520)

9360

Treasury Stock($17 x 520)

8840

Paid in capital from Treasury Stock

520

Date

General Journal

Debit

Credit

Feb 1

Treasury Stock ($17 x 1860

31620

Cash

31620

March 1

Cash($15 x 790)

11850

Retained Earnings($2 x 790)

1580

Treasury Stock ($17 x 790)

13430

March 18

Cash($13 x 450)

5850

Retained Earnings($4 x 450)

1800

Treasury Stock ($17 x 450)

7650

April 22

Cash($18 x 520)

9360

Treasury Stock($17 x 520)

8840

Paid in capital from Treasury Stock

520