Treasury Stock Transactions SprayCo Inc. develops and produces spraying equipmen

Question

Treasury Stock Transactions SprayCo Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On March 9 of the current year, SprayCo reacquired 16,400 shares of its common stock at $42 per share. On June 9, 10,300 of the reacquired shares were sold at $46 p share, and on November 13, 3,900 of the reacquired shares were sold at 45. end November an entry, leave t Mer. 9 une 9 Nov. 13 b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year? c. What is the belance in Treesury Stock on December 31 of the current yeer? d. How will the balance in Treasury Stock be reported on the balance sheet?

Explanation / Answer

a)

March 9:

Treasury Stock Dr 688800 (16400*42)

Cash Cr 688800

June 9:

Cash Dr 473800 (10300*46)

Treasury stock Cr 432600 (10300*42)

Paid-in-capital Cr 41200 (10300*4)

Nov 13:

Cash Dr 175500 (3900*45)

Treasury stock Cr 163800 (3900*42)

Paid-in-capital Cr 11700 (3900*3)

b)

Balance in paid in capital from sale of treasury stock = 41200+11700 = 52900

c)

Balance in treasury stock = 688800 - 432600 - 163800 = 92400

d)

Balance in treasury stock to be reported as deduction from total contributed capital.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.