On July 1, Marin Inc. purchases 440 shares of its $5 par value common stock for the treasury at a cash price of $12 per share. Journalize the treasury stock transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Question

Taniyah Mcmillan

Business

2 July, 05:33

On July 1, Marin Inc. purchases 440 shares of its $5 par value common stock for the treasury at a cash price of $12 per share. Journalize the treasury stock transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

+3

Answers (1)

Know the Answer?

Esmeralda · Answer 1

The journal entry is shown below:

On July 1

Treasury stock A/c Dr $5,280

To Cash A/c $5,280

(Being purchase of treasury stock for cash is recorded)

The computation is shown below:

= Number of shares purchased * cash price per share

= 440 shares * $12

= $5,280

All other information which is given is not relevant. Hence, ignored it