Agler Corporation\'s balance sheet reported the following: Capital stock outstan
ID: 2497821 • Letter: A
Question
Agler Corporation's balance sheet reported the following: Capital stock outstanding, 5,000 shares, par $30 per share $150,000 Paid-in capital in excess of par 84,100 Retained earnings 90,100 The following transactions occurred this year: (a) Purchased 210 shares of capital stock to be held as treasury stock, paying $61 per share. (b) Sold 150 of the shares of treasury stock at $66 per share. (c) Sold the remaining shares of treasury stock at $49 per share. Prepare the journal entry for these transactions under the cost method of accounting for treasury stock.
Explanation / Answer
Transaction Account Title Debit Credit a. Treasury Stock 6,300 Paid-in capital excess of par 6,510 Cash 12,810 b. Cash 9,900 Treasury stock 4,500 Paid-in capital in excess of par 5,400 c. Cash 2,940 Treasury stock 1,800 Paid-in capital in excess of par 1,140