Exercise 18-13 Treasury stock [L018-5] In 2016, Westen Transport Company entered

Question

Exercise 18-13 Treasury stock [L018-5] In 2016, Westen Transport Company entered into the treasury stock transactions described below. In 2014, Westem Transport had issued 250 million shares of its $1 par common stock at $25 per share. Required: Prepare the appropriate journal entry for each of the following transactions: (f no entry is required for a transactionlevent, select "No journal entry required" in the first account field. Enter your answers in millions (i..,10,000,000 should be entered as 10)) 1. On January 23, 2016, Westem Transport reacquired 15 million shares at $28 per share. 2. On September 3, 2016, Westem Transport sold 2 million treasury shares at $29 per share 3. On November 4, 2016, Western Transport sold 2 million treasury shares at $26 per share View transaction lis Journal entry worksheet Record the reacquisition of 15 million shares at $28 per share. Note: Enter debits before credts General Journal Debit January 23, 2016 Record entry Clear entry View general journal esc F2 F3 7 8 4

Explanation / Answer

All figures in $million Date Accounts Debit Credit 23-Jan-16 Treasury Stock (10 million x $28) $280.00 Cash $280.00 03-Sep-16 Cash $58.00 Treasury Stock (2 million x $28) $56.00 Paid-in-Capital - Share repurchase $2.00 04-Nov-16 Cash $52.00 Paid-in-Capital - Share repurchase (available balance) $2.00 Retained Earnings $2.00 Treasury Stock (2 million x $28) $56.00

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