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Connect os://newconnect.mheducation.com/flow/connect.html Help Save & Exit S Check my w In 2018, Western Transport Company entered into the treasury stock transactions described below. In 2016, Western Transport had issued 240 million shares of its $1 par common stock at $24 per share. Required: Prepare the appropriate journal entry for each of the following transactions: (If no entry is required for a trensaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be enter as 10).) 1. On January 23, 2018, Western Transport reacquired 15 million shares at $27 per share. 2. On September 3, 2018, Western Transport sold 3 million treasury shares at $28 per share. 3. On November 4, 2018, Western Transport sold 3 million treasury shares at $25 per share. View transaction list View journal entry worksheet No Date General Journal Debitl Credit 1 January 2018 Treasury stock 405 Cash 405 September 03. Cash 84 Paid-in capital-share repurchase Treasury stock 81 November 04 Cash 2018 75 Paid-in capital-excess of par 81 Treasury stock

Explanation / Answer

Note for understanding : The entry 1 & 2 in your answer is correct . but in entry number 3 , the debit difference of $6 million between cash recived & treasury stock should sholud be nulify by debiting two accounts ie

No Date General Journal Debit ($) Credit ($) 1 Jan 23 , 2018 Treasury Stock [15 * $27] 405 Cash 405 2 Sept 03,2018 Cash  [3 * $28] 84 Paid in Capital - share repurchase 3 Treasury Stock [3 * $27] 81 3 November 04, 2018 Cash  [3 * $25] 75 Paid in Capital - share repurchase (from above entry) 3 Retained Earnings (Remaining) 3 Treasury Stock [3 * $27] 81

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