Sunland Company's balance sheet shows: Common stock, $20 par $2,900,000 Paid-in capital in excess of par 1,090,000 Retained earnings 780,000 Record the following transactions by the cost method. (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.) (a) Bought 7,900 shares of its common stock at $30 a share. (b) Sold 4,100 treasury shares at $31 a share. (c) Sold 2,100 shares of treasury stock at $27 a share.

Question

Dominique Joyce

Business

9 February, 12:06

Sunland Company's balance sheet shows: Common stock, $20 par $2,900,000 Paid-in capital in excess of par 1,090,000 Retained earnings 780,000 Record the following transactions by the cost method. (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.) (a) Bought 7,900 shares of its common stock at $30 a share. (b) Sold 4,100 treasury shares at $31 a share. (c) Sold 2,100 shares of treasury stock at $27 a share.

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Jaxon Madden · Answer 1

Sunland Company's Journal entries

A.

Dr Treasury Stock 237,000

Cr Cash 237,000

B.

Dr Cash 127,100

Cr Treasury Stock 123,000

Cr Paid in Capital from Treasury Stock 4,100

C.

Dr Cash 56,700

Dr Paid-in Capital from Treasury Stock 4,100

Cr Treasury Stock 60,800

Explanation:

A. 7,900 shares * $30 a share = 237,000

B. 4,100 treasury shares * $31 a share = 127,100

127,100-4,100 = 123,000

C. 2,100 shares * $27 a share = 56,700