Peebles Company purchased 1,000 shares of its own £5 par value ordinary shares, paying £14 per share.The shares were originally sold for £9 each.The journal entry to record the purchase of treasury shares includes a debit to

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When a company purchases its own shares, the account Treasury Shares is debited for the total amount paid for the shares (in this case, £14,000). There is no impact on Share Capital-Ordinary or Share Premium-Ordinary as these accounts represent the original issuance of shares, not the purchase of treasury shares. Retained Earnings is also not impacted by the purchase of treasury shares as it is used to record profits and losses, not share transactions.

Peebles Company Purchased 1,000 Shares of Its Own £5 Par