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19 August, 12:02

On April 2 a corporation purchased for cash 5,000 shares of its own $11 par common stock at $28 per share. It sold 3,000 of the treasury shares at $31 per share on June 10. The remaining 2000 shares were sold on November 10 for $24 per share. a. Journalize the entries to record the purchase (treasury stock is recorded at cost). Apr. 2 b. Journalize the entries to record the sale of the stock. If an amount box does not require an entry, leave it blank. Jun. 10 Nov. 10

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  1. 19 August, 12:16
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    April 2

    Treasury Stock $140,000 (debit)

    Cash $140,000 (credit)

    June 10

    Cash $93,000 (debit)

    Treasury Stock $93,000 (credit)

    Nov 10

    Cash $48,000 (debit)

    Treasury Stock $48,000 (credit)

    Explanation:

    When the Company purchases its own shares

    De-recognize the equity item : Treasury Stock and also de-recognize the assets of Cash.

    When the Company sales its own shares.

    Recognize the Equity item : Treasury Stock and also recognize the asset Cash.
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