Please read the question carefully, and ONLY use the accounts given. Please show

Question

Please read the question carefully, and ONLY use the accounts given. Please show all work to ensure accuracy. Thank you.

In 2017, Pepsi Co. issued 340,000 of its 500,000 authorized shares of $10 par value common stock at $35 per share. In January, 2018, Pepsi Co repurchased 21,000 shares at $28 per share. Assume these are the only stock transactions the company has ever had.

Accounts to Chose From

Bonds Payable
Buildings
Cash
Common Stock
Common Stock Dividend Distributable
Debt Investments
Dividends Payable
Dividends Payable-Common
Dividends Payable-Preferred
Discount on Bonds Payable
Equipment
Equity Investments
Income Summary
Land
Legal Fees Expense
No Entry
Organization Expense
Paid-in Capital from Treasury Stock
Paid-in Capital in Excess of Par - Common Stock
Paid-in Capital in Excess of Par - Preferred Stock
Paid-in Capital in Excess of Stated Value - Common Stock
Preferred Stock
Property Dividends Payable
Retained Earnings
Retained Earnings Appropriated for Plant Expansion
Treasury Stock
Unamortized Bond Issue Costs
Unrealized Holding Gain or Loss - Income

Prepare the journal entry to record the purchase of treasury stock by the cost method. (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.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS 10,000 shares of treasury stock are reissued at $31 per share. Prepare the journal entry to record the reissuance by the cost method. (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 O for the amounts.) Account Titles and Explanation Debit Credit Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Account titles and Explanations Debit Credit 2017 Cash (340,000*35) 11900000 Common stock (340,000*10) 3400000 paid in capital in excess of par (340,000*25) 8500000 2018 Treasury stock 588000 cash (21,000*28) 588000 Cash (10000*31) 310000 Treasury stock (10000*28) 280000 paid in capital in excess of par from treasury stock 30000

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