Accounting for Treasury Stock On January 20, 2013, Spring Hope Corporation repur
ID: 2446556 • Letter: A
Question
Accounting for Treasury Stock
On January 20, 2013, Spring Hope Corporation repurchases 2,600 shares of its outstanding common stock for $9 per share. On April 3, 2013, Spring Hope sells 700 shares of treasury stock for $13 per share. On October 29, 2013, Spring Hope sells the remaining 1,900 shares of its treasury stock for $6 per share.
Required:
Prepare the journal entries to record these transactions. For a compound transaction, if an amount box does not require an entry, leave it blank.
2013 Jan. 20
(Record purchase of treasury shares)
Apr. 3
(Record reissue of treasury shares)
Oct. 29
(Record reissue of treasury shares)
HidePrepare the journal entries to record these transactions. For a compound transaction, if an amount box does not require an entry, leave it blank.
2013 Jan. 20
(Record purchase of treasury shares)
Apr. 3
(Record reissue of treasury shares)
Oct. 29
(Record reissue of treasury shares)
Explanation / Answer
Accounting for Treasury Stock
On January 20, 2013, Spring Hope Corporation repurchases 2,600 shares of its outstanding common stock for $9 per share. On April 3, 2013, Spring Hope sells 700 shares of treasury stock for $13 per share. On October 29, 2013, Spring Hope sells the remaining 1,900 shares of its treasury stock for $6 per share.
Prepare the journal entries to record these transactions. For a compound transaction, if an amount box does not require an entry, leave it blank.
2013 Jan. 20 Treasury Stock 23400 Cash 23400 (Record purchase of treasury shares) Apr. 3 Cash 9100 Additional Capital - Treasury Stock 2800 Treasury Stock 6300 (Record reissue of treasury shares) Oct. 29 Cash 11400 Additional Capital - Treasury Stock 2800 Retained Earning 2900 Treasury Stock 17100 (Record reissue of treasury shares)