Exercise 13-08 share, then 1,825 more shares for $46 per share, and finally 1,65

Question

Exercise 13-08 share, then 1,825 more shares for $46 per share, and finally 1,650 shares for $40 per share. Prepare journal entries for the purchase of the treasury s rporation purchased from its stockholders 5,300 shares of its own previously issued stock for $254,400. It later resold 1,825 shares for $51 per tock and the three sales of treasury stock. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To record purchase from stockholders.) (To record sales of shares at $51 per share.) y.

Explanation / Answer

Solution:

Journal Entries - Grouper Corporation Event Particulars Debit Credit 1 Treasury Stock Dr (5300*$48) $254,400.00         To Cash $254,400.00 (To record purchase of own stock) 2 Cash Dr (1825*$51) $93,075.00         To Treasury Stock (1825*$48) $87,600.00         To Additional paid in capital (1825*$3) $5,475.00 (To record sale of treasury stock) 3 Cash Dr (1825*$46) $83,950.00 Additional paid in capital Dr (1825*$2) $3,650.00         To Treasury Stock (1825*$48) $87,600.00 (To record sale of treasury stock) 4 Cash Dr (1650*$40) $66,000.00 Additional paid in capital Dr (1825*$2) $1,825.00 Retained Earnings Dr $11,375.00         To Treasury Stock (1650*$48) $79,200.00 (To record sale of treasury stock)

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.