**Explanations / Calculations if needed please *Exercise 134 Ellison Company\'s

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**Explanations / Calculations if needed please

*Exercise 134 Ellison Company's balance sheet shows: Common stock, $20 par Paid-in capital in excess of par 1,090,000 Retained earnings $3,200,000 720,000 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) (b) (c) Bought 7,900 shares of its common stock at $29 a share. Sold 3,900 treasury shares at $30 a share. Sold 1,800 shares of treasury stock at $25 a share. No. Account Titles and Explanation Debit Credit

Explanation / Answer

Journal entry :

No. accounts & explanation debit credit a. Treasury Stock (7900*29) 229100 Cash 229100 (To record treasury stock purchased) b Cash (3900*30) 117000 Treasury stock (3900*29) 113100 Paid in capital from sale of treasury stock 3900 (To record sale of treasury stock) c Cash (1800*25) 45000 Paid in capital from sale of treasury stock 3900 Retained earnings 3300 Treasury stock (1800*29) 52200 (To record sale of treasury stock)

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