Sprinkle Inc. has outstanding 10,920 shares of $10 par value common stock. On Ju

Question

Sprinkle Inc. has outstanding 10,920 shares of $10 par value common stock. On July 1, 2014, Sprinkle reacquired 103 shares at $89 per share. On September 1, Sprinkle reissued 62 shares at $95 per share. On November 1, Sprinkle reissued 41 shares at $86 per share.

Prepare Sprinkle’s journal entries to record these transactions using the cost method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit

7/1/14

9/1/14

11/1/14

Explanation / Answer

Date Account Titles and Explanation Debit Credit 07/01/2014 Treasury Stock 9167 No Entry 9167 (Being Purchase of Treasury Stock as per Cost Method) 09/01/2014 Cash 5890 Treasury Stock 5518 Contributed Capital from treasury stock transactions 372 (Being Resale of Treasury Stock as per Cost Method) 11/01/2014 Cash 3526 Contributed Capital from treasury stock transactions 123 Treasury Stock 3649 (Being Resale of Treasury Stock as per Cost Method)

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.