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SprayCo Inc. develops and produces spraying equipment for lawn maintenance and i

ID: 2526296 • Letter: S

Question

SprayCo Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On March 9 of the current year, SprayCo reacquired 18,000 shares of its common stock at $19 per share. On June 9, 13,500 of the reacquired shares were sold at $27 per share, and on November 13, 3,200 of the reacquired shares were sold at $20 Required: a. Journalize the transactions of March 9, June 9, and November 13. Refer to the Chart of Accounts for exact wording of account titles. b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year? c. What is the balance in Treasury Stock on December 31 of the current year? d. How will the balance in Treasury Stock be reported on the balance sheet? Final Questions b" What is the balance in Pad-inCapital from Sale of Treasury Stock on December 31 of the current year? c. What is the balance in Treasury Stock on December 31 of the current year? d. How will the balance in Treasury Stock be reported on the balance sheet?

Explanation / Answer

Answers

Date

Accounts Title

Debit

Credit

Mar-09

Treasury Stock [18000 x $19]

$       3,42,000.00

Cash

$      3,42,000.00

(shares re acquired)

Jun-09

Cash [13500 x $27]

$       3,64,500.00

Treasury Stock [13500 x $19]

$      2,56,500.00

(Additional) paid In Capital - Treasury Stock [13500 x $8]

$      1,08,000.00

(treasury stock re issued)

Nov-13

Cash [3200 x $20]

$           64,000.00

Treasury Stock [3200 x $19]

$         60,800.00

(Additional) paid In Capital - Treasury Stock [3200 x $1]

$            3,200.00

(treasury stock re issued)

Treasury Stock

(Additional) Paid In Capital - Treasury Stock

Mar 9, Purchase

$        3,42,000.00

Jun 9 Re issue

$     (2,56,500.00)

$       1,08,000.00

Nov 13 Re issue

$         (60,800.00)

$             3,200.00

Balance 31 Dec

$           24,700.00

$       1,11,200.00

Stockholders' Equity:

Common Stock

XXX

Paid In Capital

XXX

Retained Earning

XXX

Total

XXXX

(Less) Treasury Stock

XXX

Total Stockholders' Equity

XXXX

Date

Accounts Title

Debit

Credit

Mar-09

Treasury Stock [18000 x $19]

$       3,42,000.00

Cash

$      3,42,000.00

(shares re acquired)

Jun-09

Cash [13500 x $27]

$       3,64,500.00

Treasury Stock [13500 x $19]

$      2,56,500.00

(Additional) paid In Capital - Treasury Stock [13500 x $8]

$      1,08,000.00

(treasury stock re issued)

Nov-13

Cash [3200 x $20]

$           64,000.00

Treasury Stock [3200 x $19]

$         60,800.00

(Additional) paid In Capital - Treasury Stock [3200 x $1]

$            3,200.00

(treasury stock re issued)

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