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5 December, 23:24

On January 2, 2019, Frederick Corporation issued 18,000 shares of $10 par value common stock for $13 per share. On April 1, 2019, Alpha reacquired 1,500 of these shares when they were trading $16 per share. On August 1, 2019 Frederick reissued 800 shares of treasury stock at the going market rate of $19 per share. Use this information to prepare the General Journal entry (without explanation) for the August 1 transaction.

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  1. 5 December, 23:37
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    The Journal Entry with narration is shown below:-

    Explanation:

    Data provided as per the question

    Reissued shares = 800

    Market rate per share = $19

    Trading per share = $16

    The Journal Entry is shown below:-

    Cash Dr, $15,200

    (800 * $19)

    To treasury stock $12,800

    (800 * $16)

    To Paid-in capital $2,400

    (800 * $3)

    (Being cash is recorded)
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