Golden Gardens Inc. develops and produces spraying equipment for lawn maintenanc

Question

Golden Gardens Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On June 19 of the current year, Golden Gardens Inc. reacquired 24,000 shares of its common stock at $64 per share. On August 30, 19,000 of the reacquired shares were sold at $68 per share, and on September 6, 3,000 of the reacquired shares were sold at $70. a. Journalize the transactions of June 19, August 30, and September 6. b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year? c. What is the balance in Treasury Stock on December 31 of the current year? d. How will the balance in Treasury Stock be reported on the balance sheet?

Explanation / Answer

Journal entry...................................debit.........................credit june 19 Cash.............................................................................1536000 Treasury Stock...................................1536000 august 30 Cash...............................................1292000 Treasury Stock.................................................................1292000 sep 6 Cash...............................................210000 Treasury Stock.................................................................210000 balance in treasure stock = 34000 balance in treasure stock will be reported as a liability

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