Westglow Corporation purchased 3000 shares of its $5 par value common stock for a cash price of $10 per share. Two months later Westglow sold the treasury stock for a cash price of $8 per share.
Instructions
Prepare the journal entry to record the sale of the treasury stock assuming
(a) No balance in Paid-in Capital from Treasury Stock.
(b) A $4000 balance in Paid-in Capital from Treasury Stock.

Question

Quizplus · Accepted Answer

The Answer of Westglow Corporation purchased 3000 shares of its $5 par value common stock for a cash price of $10 per share. Two months later Westglow sold the treasury stock for a cash price of $8 per share.
Instructions
Prepare the journal entry to record the sale of the treasury stock assuming
(a) No balance in Paid-in Capital from Treasury Stock.
(b) A $4000 balance in Paid-in Capital from Treasury Stock.

Westglow Corporation Purchased 3000 Shares of Its $5 Par Value