Exercise 11-7 $46 per share, and finally 1,500 shares for $40 per share. Prepare

Question

Exercise 11-7 $46 per share, and finally 1,500 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 Rinehart Corporation purchased from its stockholders 4,500 shares of ts own previously ssued stock for $216,000. It later resold 1,500 shares for $51 per share, then 1, 500 more shares for indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit To recoed purchase from stockholders.) (To record sales of shares at $51 per share.) To recoed sales of shares at $46 per share.)

Explanation / Answer

Journal entries:

Treasury stock (4500 shares * $48) $216000

To cash $216000

Cash (1500shares * $51) $76500

To treasury stock (1500 shares * $48) $72000

To paid in capital $4500

Cash (1500 shares * $46) $69000

Additional paid in capital $3000

To treasury stock(1500 shares * $48) $72000.

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