On January 1, 2014, the stockholders’ equity section of Newlin Corporation shows

Question

On January 1, 2014, the stockholders’ equity section of Newlin Corporation shows common stock ($5 par value) $1,500,000; paid-in capital in excess of par $1,098,900; and retained earnings $1,246,900. During the year, the following treasury stock transactions occurred.

Sold 8,960 treasury shares for cash at $14 per share

Mar. 1 Purchased 51,000 shares for cash at $15 per share. July 1 Sold 10,500 treasury shares for cash at $17 per share. Sept.   1

Sold 8,960 treasury shares for cash at $14 per share

.

) (a Journalize the treasury stock transactions. (Credit account titles are automatically indented w Date Account Titles and Explanation Debit Credit Mar. 1 July 1 Sept. 1

Explanation / Answer

a) Journal entires for treasury stock transactions:

Account Title and explanation Debit Credit Mar.1 Treasury stock $765,000 Cash $765,000 To Record reacquisition of stock

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