A company has 10,000 shares of $10 par common stock outstanding. Prepare entries to record the following:
(a)Purchased 1,500 shares of treasury stock at $16. The treasury stock is accounted for by the cost method. There were no previous purchases of treasury shares.(b)Sold 1,000 shares of treasury stock at $19.(c)Purchased equipment for $80,000, paying $25,000 in cash and issuing 4,000 shares of common stock for the remaining.(d)Sold 500 shares of treasury stock at $14.

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The Answer of A company has 10,000 shares of $10 par common stock outstanding. Prepare entries to record the following:
(a)Purchased 1,500 shares of treasury stock at $16. The treasury stock is accounted for by the cost method. There were no previous purchases of treasury shares.(b)Sold 1,000 shares of treasury stock at $19.(c)Purchased equipment for $80,000, paying $25,000 in cash and issuing 4,000 shares of common stock for the remaining.(d)Sold 500 shares of treasury stock at $14.

A Company Has 10,000 Shares of $10 Par Common Stock