A company's only treasury stock transactions for the current year follow:
(1)1,000 shares of its common stock were purchased on June 1 for $40,000; (2)On July 1 it reissued 500 of these shares at $45 per share; (3)On August 1 it reissued the 500 remaining treasury shares at $38 per share.
1)Prepare the journal entries required to record these transactions.
2)Calculate the balance in Paid-in Capital,Treasury Stock,on September 1 assuming its beginning-year balance is zero.

Question

A company's only treasury stock transactions for the current year follow:
 (1)1,000 shares of its common stock were purchased on June 1 for $40,000; (2)On July 1 it reissued 500 of these shares at $45 per share; (3)On August 1 it reissued the 500 remaining treasury shares at $38 per share.
1)Prepare the journal entries required to record these transactions.
2)Calculate the balance in Paid-in Capital,Treasury Stock,on September 1 assuming its beginning-year balance is zero.

Quizplus · Accepted Answer

The Answer of A company's only treasury stock transactions for the current year follow:
 (1)1,000 shares of its common stock were purchased on June 1 for $40,000; (2)On July 1 it reissued 500 of these shares at $45 per share; (3)On August 1 it reissued the 500 remaining treasury shares at $38 per share.
1)Prepare the journal entries required to record these transactions.
2)Calculate the balance in Paid-in Capital,Treasury Stock,on September 1 assuming its beginning-year balance is zero.

A Company's Only Treasury Stock Transactions for the Current Year