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8 November, 14:39

California Surf Clothing Company issues 1,000 shares of $1 par value common stock at $35 per share. Later in the year, the company decides to purchase 100 shares at a cost of $38 per share. Record the purchase of treasury stock. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

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  1. 8 November, 15:32
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    The journal entry to record the purchase of treasury stock would be:

    Debit ($) Credit ($)

    Treasury Stock 3,800

    Cash 3,800

    Explanation:

    In order to prepare The journal entry to record the purchase of treasury stock we would have to calculate the treasury stock as follows:

    Treasury Stock=shares purchased*cost per share

    Treasury Stock=100 Shares x $38.00 per share

    Treasury Stock=$3,800

    Therefore, The journal entry to record the purchase of treasury stock would be:

    Debit ($) Credit ($)

    Treasury Stock 3,800

    Cash 3,800
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