In 2016, Western Transport Company entered into the treasury stock transactions

Question

In 2016, Western Transport Company entered into the treasury stock transactions described below. In 2014, Western Transport had issued 140 million shares of its $1 par common stock at $17 per share. Required: Prepare the appropriate journal entry for each of the following transactions: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e, 10,000,000 should be entered as 10).) 1. 2. 3. On January 23, 2016, Western Transport reacquired 10 million shares at $20 per share. On September 3, 2016, Western Transport sold 1 million treasury shares at $21 per share. On November 4, 2016, Western Transport sold 1 million treasury shares at $18 per share. View transaction list Journal entry worksheet Record the reacquisition of 10 million shares at $20 per share. Note: Enter debits before credits. Date General Journal Debit Credit January 23, 2016

Explanation / Answer

Jan-23 Treasury stock 200         Cash 200 Sep-03 Cash 21        Treasury stock 20        Paid-in capital—Share repurchase 1 Nov-04 Cash 18 Paid-in capital—Share repurchase 1 Retained earnings 1        Treasury stock 20

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