Rinehart Corporation purchased from its stockholders 4,500 shares of its own pre

Question

Rinehart Corporation purchased from its stockholders 4,500 shares of its own previously issued stock for $216,000.

It later resold 1,500 shares for $51 per share,

then 1,500 more shares for $46 per share,

and finally 1,500 shares for $40 per share.

Prepare journal entries for the purchase of the treasury stock and the three sales of treasury stock. (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.)

This is what I got --- The Green is correct but the Red needs to be corrected. Please help.

Explanation / Answer

Journal entry :

Date accounts & Explanation debit credit Treasury stock 216000 Cash 216000 (To record purchase stock) Cash 76500 Treasury stock 72000 Paid in capital from sale of treasury stock 4500 (To record sales of share) Cash 69000 Paid in capital from sale of treasury stock 3000 Treasury stock 72000 (To record sale of treasury stock) Cash 60000 Paid in capital from sale of treasury stock 1500 Retained earnings 10500 Treasury stock 72000 (To record sale of treasury stock)

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