Treasury Stock Inland Corporation issued 50,000 shares of $4 par value common st

Question

Treasury Stock Inland Corporation issued 50,000 shares of $4 par value common stock at $29 per share and 9,000 shares of S42 par value, ten percent preferred stock at $119 per share. Later, the company purchased 2.000 shares of its own common stock at $32 per share. a. Prepare the journal entries to record the share issuances and the purchase of the common shares. b. Assume that Inland sold 1.500 shares of the treasury stock at $39 per share. Prepare the general journal entry to record the sale of this treasury stock. c. Assume that Inland sold the remaining 500 shares of treasury stock at $28 per share. Prepare the joumal entry to record the sale of this treasury stock. General Journal Ref Description Debit Credit Common stock Issued shares of common stock 10% Preferred stock Issued shares of preferred stock. Acquired shares of common stock b. Treasury stock Sold shares of treasury stock. Paid-in-cepital from treasury stock Sold shares of treasury stock

Explanation / Answer

Date Account Debit credit a cash   [50000*29] 1450000 common stock [50000*4] 200000 paid in capital in excess of par -common stock 1250000 [being common stock issued] cash [9000*119] 1071000 10% preferred stock [9000*42] 378000 paid in capital in excess of par -preferred stock 693000 Tresury stock 64000 cash 64000 [common shares repurchased 2000*32] b cash [1500*39] 58500 paid in capital in excess of cost -treasury stock 10500 Treasury stock [1500*32] 48000 [being treasury stock sold] c cash   [500*28] 14000 paid in capital in excess of cost -treasury stock 2000 Treasury stock [500*32] 16000

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