Rinehart Corporation purchased from its stockholders 5,200 shares of its own pre
ID: 2467449 • Letter: R
Question
Rinehart Corporation purchased from its stockholders 5,200 shares of its own previously issued stock for $249,600. It later resold 1,900 shares for $51 per share, then 1,900 more shares for $46 per share, and finally 1,400 shares for $40 per share. Prepare journal entries for the purchase of the treasury stock and the three sales of treasury stock. (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.)
ccount Titles and Explanation
Debit
Credit
(To record purchase from stockholders.)
(To record sales of shares at $51 per share.)
(To record sales of shares at $46 per share.)
(To record sale of shares at $40 per share.)
ccount Titles and Explanation
Debit
Credit
(To record purchase from stockholders.)
(To record sales of shares at $51 per share.)
(To record sales of shares at $46 per share.)
(To record sale of shares at $40 per share.)
Explanation / Answer
Account Titles and Explanation
Debit
Credit
Treasury stock A/C
2496000
Cash A/C
249600
(To record purchase from stockholders.)
Cash A/C
96900
Treasury Stock A/C
91200
Additional paid in capital A/C -Profit
5700
(To record sales of shares at $51 per share.)
Cash A/C
87400
Additional paid in capital -Loss
3800
Treasury stock
91200
(To record sales of shares at $46 per share.)
Cash A/C
56000
Additional paid capital-Loss
11200
Treasury Stock
67200
(To record sale of shares at $40 per share.)
Account Titles and Explanation
Debit
Credit
Treasury stock A/C
2496000
Cash A/C
249600
(To record purchase from stockholders.)
Cash A/C
96900
Treasury Stock A/C
91200
Additional paid in capital A/C -Profit
5700
(To record sales of shares at $51 per share.)
Cash A/C
87400
Additional paid in capital -Loss
3800
Treasury stock
91200
(To record sales of shares at $46 per share.)
Cash A/C
56000
Additional paid capital-Loss
11200
Treasury Stock
67200
(To record sale of shares at $40 per share.)
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