In 2018, Western Transport Company entered into the treasury stock transactions
ID: 2545836 • Letter: I
Question
In 2018, Western Transport Company entered into the treasury stock transactions described below. In 2016, Western Transport had issued 140 million shares of its $1 par common stock at $17 per share. Required Prepare the appropriate journal entry for each of the following transactions: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) 1. On January 23, 2018, Western Transport reacquired 10 million shares at $20 per share. 2. On September 3, 2018, Western Transport sold 1 million treasury shares at $21 per share. 3. On November 4, 2018, Western Transport sold 1 million treasury shares at $18 per share. View transaction list Journal entry worksheet 2 3 Record the reacquisition of 10 million shares at $20 per share. Note: Enter debits before credits. Date General Journal Debit Credit January 23, 2018 View general journalExplanation / Answer
Journal Entry (Amount in Millions) S. No. Date Particulars Dr. Amt. Cr. Amt. 1 23-Jan-18 Treasury Stock 200.00 10 Millions X $20 Cash 200.00 (To record the purchase of stock) 2 3-Sep-18 Cash 21.00 1 Million X $21 Treasury Stock 20.00 1 Million X $20 Paid in Capital in Excess of Par - Treasury Stock 1.00 1 Million X $1 (To record the sale of treasury stock) 2 4-Nov-18 Cash 18.00 1 Million X $18 Paid in Capital in Excess of Par - Treasury Stock 1.00 Retained Earnings 1.00 Treasury Stock 20.00 1 Million X $20 (To record the sale of treasury stock)