In 2018, Southwestern Corporation completed the treasury stock transactions list
ID: 2557487 • Letter: I
Question
In 2018, Southwestern Corporation completed the treasury stock transactions listed below.
February 2: Reacquired 73,000 shares at $12.30.
March 17: Sold 23,000 treasury shares at $14.15.
May 17: Sold 28,000 treasury shares at $8.15.
Southwestern had issued 100,000 shares of its $1 par common stock for $10 several months ago.
Required: Prepare the journal entries to record the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Explanation / Answer
Journal entry :
Date accounts & explanation debit credit Feb 2 Treasury stock (73000*12.30) 897900 Cash 897900 (To record treasury stock purchased) Mar 17 Cash (23000*14.15) 325450 Paid in capital from sale of treasury stock 42550 Treasury stock (23000*12.30) 282900 (To record sale of treasury stock) May 17 Cash (28000*8.15) 228200 Paid in capital from sale of treasury stock 42550 Retained earnings 73650 Treasury stock (28000*12.30) 344400