Alamo Corporation began 2015 with the following accound balances: Common stock,

Question

Alamo Corporation began 2015 with the following accound balances:

Common stock, $20 par, 100,000 shares authorized, 75,000 outstanding.......................$1,500,000

Paid-in-capital in excess of par-common...............................$500,000

Retained earnings..........................$750,000

Alamo completed the following transactions in October 2015. Prepare the journal entries for each of these transactions:

Oct 10: Reaqcuired 5,000 shares of its stock for $30 per share

Oct 20: Sold 2,000 shares of treasury stock for $33 per share

Oct 30: Sold the remaining shares of treasury stock for $25 per share

Explanation / Answer

Answer:

Date Account Title Debit Credit Oct-10 By Treasury Stock 150000 To Cash 150000 Oct-20 By Cash 66000 (2,000*$33) To Paid in Capital from treasury stock 6000 To Treasury Stock 60000 (2,000*$30) Oct-30 By Cash 50000 (2,000*$25) By Paid in Capital from treasury stock 10000 To Treasury Stock 60000 (2,000*$30)

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