Instructions Prepare journal entries for the purchase of the treasury stock and
ID: 2433971 • Letter: I
Question
Instructions
Prepare journal entries for the purchase of the treasury stock and the three sales of treasury stock. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2. If amounts are equal, list in alphabetical order.)
Account / Description Debit Credit Common stockPreferred stockPaid-in cap. from treasury stockPaid-in cap. in excess of par valueTreasury stockAccounts payableAccounts receivableCashRetained earnings $ Preferred stockRetained earningsPaid-in cap. in excess of par valueCommon stockAccounts receivableAccounts payableCashTreasury stockPaid-in cap. from treasury stock $ (To record purchase of treasury stock.) CashRetained earningsPaid-in cap. from treasury stockTreasury stockCommon stockPreferred stockPaid-in cap. in excess of par valueAccounts receivableAccounts payable $ Preferred stockPaid-in cap. from treasury stockCommon stockPaid-in cap. in excess of par valueAccounts payableAccounts receivableTreasury stockCashRetained earnings $ Common stockPreferred stockAccounts receivablePaid-in cap. from treasury stockCashRetained earningsPaid-in cap. in excess of par valueAccounts payableTreasury stock $ (To record sale of of shares @ $54 per share.) Preferred stockCashAccounts receivableTreasury stockPaid-in cap. in excess of par valueAccounts payablePaid-in cap. from treasury stockCommon stockRetained earnings $ Retained earningsCashAccounts payablePaid-in cap. from treasury stockCommon stockPreferred stockPaid-in cap. in excess of par valueAccounts receivableTreasury stock $ Common stockPaid-in cap. in excess of par valuePaid-in cap. from treasury stockAccounts payableTreasury stockRetained earningsExplanation / Answer
TreasuryStock 253,550 Cash 253,550 (To record treasury stock) p/s treasury stock purchase price is $50/stock Cash 108,756 Treasury Stock(2,014 * $50) 100,700 Paid in Capital from treasurystock 8,056 (To record sell in $54/stock) Cash 98,686 Paid in Capital from treasurystock 6,042 RetainedEarnings 4,028 Treasury Stock(2,014 * $50) 100,700 (To record sell in $40/stock) Cash 41,720 Paid in Capital from treasurystock 2,014 Treasury Stock(1,043 * $50) 52,150 (To record sell in $49/stock)