Need help with this problem: Seacrest Corporation has the following stockholders

Question

Need help with this problem:
Seacrest Corporation has the following stockholders' equity accounts on January 1, 2017:

Common Stock, $10 par value   $1,500,000

Paid-in Capital in Excess of Par  200,000

Retained Earnings       500,000

  Total Stockholders' Equity  $2,200,000

The company uses the cost method to account for treasury stock transactions. During 2017, the following treasury stock transactions occurred:

April 1 Purchased 15,000 shares at $18 per share.

August 1 Sold 5,000 shares at $21 per share.

October 1 Sold 6,000 shares at $15 per share.

Instructions

Journalize the treasury stock transactions for 2017.

Seacrast Carporatian han the tollawing codkholders equity eccunis on January 1, 2017 31,500.000 Common Stock $10 par vale Paid-n Total 8100holders Eqauty The company uses the cost method to account far treasry sock traacsors Duing 2017, the followdng 1reaury slock transaciara occurred Apri 1 Puronosed 15,000 sharee at $8 per share August 1 Seld 5 000 shares at 521 pa shars Ocicber1 Seld 8 000 shares al S15 par share

Explanation / Answer

Answer: Journal Entry:

1 april Treasury stock A/C Dr. $270000 (15000*18)

                  To cash A/C                   $270000

1 August   Cash A/C Dr. $105000 (5000*21)

                   To Treasury stock A/C              $90000 (5000*18)

                    To paid in capital from treasury   15000 (5000*3)

1 Oct    Cash A/C Dr. $90000 (6000*15)

   Paid in capital from treasury stock A/C dr. $18000 (6000*3)               

    To Treasury stock A/C                $108000 (6000*18)

          paid in capital from treasury  

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