13-7 On January 1, 2017, the stockholders\' equity section of Newlin Corporation

Question

13-7 On January 1, 2017, the stockholders' equity section of Newlin Corporation shows Journalize t common stock ($5 par value) $1,500,000; paid-in capital in excess of par $1.000,000; and transaction retained earnings $1,200,000. During the year, the following treasury stock transactions (LO 3) occurred Mar. 1 July 1 Purchased 50,000 shares for cash at $15 per share. Sold 10,000 treasury shares for cash at $17 per share. Sold 8,000 treasury shares for cash at $14 per share. Sept. I Instructions (a fourialise the treasury stock tranisactions (b) Restate the entry for September 1, assuming the treasury shares were sold at $12 per share.

Explanation / Answer

a. Journal Entry

b. Journal Entry if Sold @ $12

Date General Journal Debit Credit Mar 1 2017 Treasury Stock 750000 Cash 750000 Jul 1 2017 Cash 170000 Treasury Stock 150000 Paid in Capital in excess of par 20000 Sept 1 2017 Cash 112000 Paid in Capital in Excess of Par 8000 Treasury Stock 120000

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