Exercise 12-10 Treasury Stock Transactions Including Retirement The following st
ID: 2531918 • Letter: E
Question
Exercise 12-10
Treasury Stock Transactions Including Retirement
The following stock transactions of Carmel Corporation represent all its treasury stock transactions for the year:
Record Carmel Corporation's stock transactions using T accounts. If an amount is zero, enter "0".
SelectJune 1June 10June 30Item 1
Exercise 12-10
Treasury Stock Transactions Including Retirement
The following stock transactions of Carmel Corporation represent all its treasury stock transactions for the year:
June 1 Purchased 1,000 shares of its own $30 par value common stock for $70 per share, the current market price. 10 Sold 250 shares of treasury stock purchased on June 1 for $80 per share. 20 Sold 350 shares of treasury stock purchased on June 1 for $58 per share. 30 Retired the remaining shares purchased on June 1. The original issue price was $42 per share.Record Carmel Corporation's stock transactions using T accounts. If an amount is zero, enter "0".
CashSelectJune 1June 10June 30Item 1
SelectJune 1June 10June 30Item 3 SelectJune 1June 20June 30Item 5 Bal. Treasury Stock, Common SelectJune 1June 20June 30Item 8 SelectJune 1June 10Item 10 SelectJune 1June 20Item 12 SelectJune 1June 30Item 14 Bal. Retained Earnings SelectJune 1June 10June 20Item 17 SelectJune 1June 10June 30Item 19 Bal. Paid-in Capital, Treasury Stock SelectJune 1June 10June 20June 30Item 22 SelectJune 1June 10June 20June 30Item 24 Bal. Common Stock SelectJune 1June 10June 20June 30Item 27 Bal. Additional Paid-in Capital SelectJune 1June 10June 20June 30Item 30 Bal.Explanation / Answer
Cash 1-Jun $70,000 10-Jun 17500 (250*70) 20-Jun 24500 (1000-600)*70 Bal. Treasury Stock, Common 1-Jun 70000 10-Jun 17500 20-Jun 24500 30-Jun 28000 Bal. 0 Retained Earnings 20-Jun 1700 30-Jun 11200 Bal. Paid-in Capital, Treasury Stock 20-Jun 2500 10-Jun 2500 Bal. 0 Common Stock 30-Jun 12000 Bal. Additional Paid-in Capital 30-Jun 4800 Bal. Entries 1-Jun Treasury stock (1000*70) $70,000 Cash $70,000 b 10-Jun Cash (250*80) 20000 Additional paid in capital-Treasury stock 2500 Treasury stock (250*70) 17500 c Cash (350*58) 20300 20-Jun Retained Earnings (bal fig) 1700 Additional paid in capital-Treasury stock 2500 Treasury stock (350*70) 24500 d 30-Jun Common stock (400*30) 12000 Additional paid in capital in excess-Common stock (400*12) 4800 Retained Earnings (bal fig) 11200 Treasury stock (400*70) 28000
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