[The following information applies to the questions displayed below. The followi

Question

[The following information applies to the questions displayed below. The following selected transactions occurred for Corner Corporation: Purchased 550 shares of the company's own common stock at $35 cash per share; the stock is now held in treasury Feb.i July 15 Issued 175 of the shares purchased on February 1 for $45 cash per share. Sept. 1 Issued 135 more of the shares purchased on February 1 for $30 cash per share. velue 10.00 points Required: 1. indicating the account, amount, and direction of the effect for the above transactions (Enter any decreases to account balances with a minus sign, Assets Feb. 1 July 15

Explanation / Answer

Requirement 1 Indicating the account and amount and the direction of effect of the above Transactions Assets Amount Liabilities Amount Feb-01 Cash 550*$35 -$19250 Common Stock Less: Cost of Treasury stock $19250 -$19250 Jul-15 Cash 175*$40 $7000 Cost of treasury stock 175*$35 -$6125 $6125 Paid in capital (175*($40-$35) $875 $875 Sep-01 Cash 135*$30 $4050 Cost of treasury stock 135*$35 -$4725 $4725 Paid in capital (135*$35-$30)) -$675 -$675 Total - $8200 - $8200 Requirement 2 Journal Entry for Purchase of 550 shares of previously issued common stock for price of $35 per share date Account titles & Explanation Debit Credit Feb-01 Treasury Stock A/c $19250       To cash A/c (550*$35) $19250 (Being Own stock purchased at $35 per share)

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