1.Record the purchase of 580 shares of previously issued common stock for a pric

Question

1.Record the purchase of 580 shares of previously issued common stock for a price of $38 per share.

2.Record the re-issuance of 190 shares of treasury stock previously purchased for a price of $38 per share and sold for a price of $48 per share.

3.Record the re-issuance of 150 shares of treasury stock previously purchased for a price of $38 per share and sold for a price of $33 per share.

E11-8 Recording Treasury Stock Transactions and Analyzing Their Impact [LO 11-2, LO 11-3 The following information applies to the questions displayed below The followlng selected transactions occurred for Corner Corporation Feb. 1 Purchased 580 shares of the company's own common stock at $38 cash per share, the stock Is July 15 issued 190 of the shares purchased on February 1 for $48 cash per share now held In treasury Sept. 1 Issued 150 more of the shares purchased on February 1 for $33 cash per share References Section Break E11-8 Recording Treasury Stock Transactions and Analyzing Their Impact [LO 11-2, LO 11-3] value: 8.33 points E11-8 Part 1 Required: 1. 1. Indicating the account, amount, and direction of the effect for the above transactions. (Enter any decreases to account balances with a minus sign.) Assets Liabilities Stockholders' Equity Feb. 1 July 15 Sept. 1

Explanation / Answer

1) Assets = Liabilities + Stockholders' Equity Feb 1 Cash -22040 = + Treasury stock -22040 Jul 15 Cash 9120 = + Treasury stock 7220 = + Paid-in-capital treasury stock 1900 Sep 1 Cash 4950 = + Treasury stock 5700 = + Paid-in-capital treasury stock -750 2) Date Account Head & Description Debit Amount Credit Amount Feb 1 Cash (580*38) 22040 Treasury stock 22040 (to record purchase of own shares) Jul 15 Cash (190*48) 9120 Treasury stock (190*38) 7220 Paid-in-capital treasury stock (190*10) 1900 (to record sale of treasury stock) Sep 1 Cash (150*33) 4950 Paid-in-capital treasury stock (150*5) 750 Treasury stock (150*38) 5700 (to record sale of treasury stock)

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