Exercise 13-7 (Part level Submission) On January 1, 2014, the stockholders\' equ

Question

Exercise 13-7 (Part level Submission) On January 1, 2014, the stockholders' equity section of Newlin Corporation shows common stock ($6 par value) $1,800,000; paid-in capital in excess of par $1,081,700; and retained earnings $1,160,600. During the year, the following treasury stock transactions occurred. Mar. 1 Purchased 48,000 shares for cash at $15 per share. July 1 Sold 10,700 treasury shares for cash at $17 per share Sept. 1 Sold 9,190 treasury shares for cash at $14 per share. (a) Journalize the treasury stock transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Mar. 1 July 1 Sept. 1

Explanation / Answer

ans) Mar 1 Treasurey stock 720,000

Cash 720,000

( 48000 X 15 )

July 1 Cash ( 10700 X 17) 181900

Treasurey stock ( 10700 X 15) 160500

Paid in capital from treasurey stock( 10700 X 2) 21400

Sep 1 Cash (9190 X 14 ) 128660

Paid in capital from treasurey stock (9190 X 1) 9190

Treasurey stock ( 9190 X 15 ) 137850

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