The following selected transactions occurred for Corner Corporation: Feb. 1 Purc
ID: 2469803 • Letter: T
Question
The following selected transactions occurred for Corner Corporation:
Feb. 1 Purchased 600 shares of the company’s own common stock at $40 cash per share; the stock is now held in treasury.
July 15 Issued 200 of the shares purchased on February 1 for $50 cash per share.
Sept. 1 Issued 160 more of the shares purchased on February 1 for $35 cash per share.
Prepare the indicated journal entries for each of the transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Feb 1 Record the purchase of 600 shares of previously issued common stock for a price of $40 per share.
July 15 Record the re-issuance of 200 shares of treasury stock previously purchased for a price of $40 per share and sold for a price of $50 per share.
Sept 1 Record the re-issuance of 160 shares of treasury stock previously purchased for a price of $40 per share and sold for a price of $35 per share.
Explanation / Answer
1-Feb Treasury Stock Dr 24000 Cash Cr 24000 ( To record purchase of 600 treasury stock @ 40 each) 15-Jul Cash Dr 10000 Treasury stock Cr 8000 Addditional paid in capital - treasury stock Cr 2000 ( To record reissuance of 200 shares @ 50) 1-Sep Cash Dr 5600 Discount on issue of treasury stock Dr 800 Treasury stock Cr 6400 ( To record issuance of 160 stock @ 35)