The original sale of the 450 par-value common shares of Gray Company was recorde
ID: 2415252 • Letter: T
Question
The original sale of the 450 par-value common shares of Gray Company was recorded as follows:
Cash...................................................................290,000
Common stock.................................................. 250,000
Paid-in capital in excess of par..........................40,000
Instructions: Record the treasury stock transactions (given below) under the cost method.
Transactions:
(a) Bought 300 shares of common stock as treasury shares at $62
(b) Sold 80 shares of treasury stock at $60
(c) Sold four treasury shares at $68
Explanation / Answer
Gray Company Journal Entry Sr No Account Title Dr $ Cr $ a Treasury Stock 18,000.00 Cash 18,000.00 (purchase of 300 trasury stock @60) b Treasury Stock 4,960.00 Reatined Earning 160.00 Cash 4,800.00 ( sales of 80 treasury stock @62 ) c Treasury Stock 248.00 Additional Paid in Capital from Trasury Stock 24.00 Cash 272.00
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