Exercise 13-7 On lonuarny 1,202, he storikho deil wenuy sen or erirron has commo

Question

Exercise 13-7 On lonuarny 1,202, he storikho deil wenuy sen or erirron has common stock (57 par velue) $2,10,00; paild-in capitalin excess f ar $1,010,000, and retained armings $1,190,000. During the year, the following treasury stock transactions occurred. Mar. 1 Purchased 49,000 shares for cash at $15 per share. uly 1 Sold 11,500 treasury shares for cash at $17 per share. Sept. 1 Sold 10,500 treasury shares for cash at $14 per share. ournalize the treasury stock transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manualy. Date Account Titles and Explanation Debit Credit Sept. 1 Restate the entry for September 1, assuming the treasury shares were sold at $11 per share. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Sept. 1 DebitCredit

Explanation / Answer

Journal entry :

b) Journal entry

Date accounts & explanation debit credit Mar 1 Treasury stock (49000*15) 735000 Cash 735000 (To record treasury stock purchased) July 1 Cash (11500*17) 195500 Treasury stock (11500*15) 172500 Paid in capital from sale of treasury stock 23000 (To record sale of treasury stock) Sep 1 Cash (10500*14) 147000 Paid in capital from sale of treasury stock (10500*1) 10500 Treasury stock (10500*15) 157500 (To record sale of treasury stock)

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