Prepare the indicated jounal entries for each of the transactions. (If no entry

Question

Prepare the indicated jounal 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.) View transaction list Record the purchase of 470 shares of previously issued common stock for a price of $27 per share. 1 k for a Record the re-issuance of 135 shares of treasury stock previously purchased for a price of $27 per share and sold for a price of $37 per share. 2 Record the re-issuance of 95 shares of treasury stock previously purchased for a price of $27 per share and sold for a price of $22 per share. 3 Credit Note :journal entry has been entered Record entry Clear entry View general journal

Explanation / Answer

Journal Entry: S.no. Accounts title and explanations Debit $ Credit $ 1 Treasury Stock Account Dr. 12690       Cash Account (470 shares @27) 12690 2 Cash Account Dr. (135 shares @37) 4995      Treasury Stock (135 shares @27) 3645      Retained Earnings 1350 3 Cash Account (95 shares @$22) Dr. 2090 Retained Earnings (95 shares @$5) Dr. 475       Treasury Stock (95 shares @$27) 2565 The reissuance of Treasury stock at more or less than its original repurchase cost does not affect the net income. The transaction affects only Equity Accounts.

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