The original sale of the $50 par value common shares of Gray Company was recorded as follows:
InstructionsRecord the treasury stock transactions (given below) under the cost method:Transactions:
(a) Bought 400 shares of common stock as treasury shares at $62.
(b) Sold 120 shares of treasury stock at $60.
(c) Sold 60 treasury shares at $68.

Question

The original sale of the $50 par value common shares of Gray Company was recorded as follows:  
InstructionsRecord the treasury stock transactions (given below) under the cost method:Transactions:
(a) Bought 400 shares of common stock as treasury shares at $62.
(b) Sold 120 shares of treasury stock at $60.
(c) Sold 60 treasury shares at $68.

Quizplus · Accepted Answer

The Answer of The original sale of the $50 par value common shares of Gray Company was recorded as follows:  
InstructionsRecord the treasury stock transactions (given below) under the cost method:Transactions:
(a) Bought 400 shares of common stock as treasury shares at $62.
(b) Sold 120 shares of treasury stock at $60.
(c) Sold 60 treasury shares at $68.

The Original Sale of the $50 Par Value Common Shares