Exercise 11-8A Treasury stock transactions LO 11-3 Elroy Corporation repurchased

Question

Exercise 11-8A Treasury stock transactions LO 11-3 Elroy Corporation repurchased 2,800 shares of its own stock for $40 per share. The stock has a par of $10 per share. A month later Elroy resold 700 shares of the treasury stock for $48 per share. Required a. Record the two events in general journal format. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 Record the repurchase of own stock. Note: Enter debits before credits Event General Journal Debit Credit Record entry Clear entry View general journal

Explanation / Answer

Treasury stock 112000 =2800*40         Cash 112000 Cash 33600 =700*48       Treasury stock 28000 =700*40       Paid in capital-Treasury stock 5600 b Balance of Treasury stock = 112000-28000= $84000

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