On February 1, Marine Company reacquired 7,500 shares of its common stock at $30

Question

On February 1, Marine Company reacquired 7,500 shares of its common stock at $30 per share. On March 15, Marine sold 4,500 of the reacquired shares at $34 per share. On June 2, Marine sold the remaining shares at $28 per share.

1) Journalize the transactions of February 1, March 15, and June 2. Refer to the Chart of Accounts for exact wording of account titles. This journal should include 8 rows. Be sure to include correct dates and Debits/Credits.

Chart of Accounts:

Marine Company General Ledger ASSETS 110 Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Supplies 151 Prepaid Insurance 181 Land 191 Buildings 192 Accumulated Depreciation-Building 193 Equipment 194 Accumulated Depreciation-Equipment LIABILITIES 210 Accounts Payable 221 Notes Payable 226 Interest Payable 231 Cash Dividends Payable 241 Salaries Payable 261 Mortgage Note Payable EQUITY 311 Preferred Stock 312 Paid-In Capital in Excess of Par-Preferred Stock 321 Common Stock 322 Paid-In Capital in Excess of Par-Common Stock 323 Paid-In Capital in Excess of Stated Value-Common Stock 331 Treasury Stock 332 Paid-In Capital from Sale of Treasury Stock 336 Stock Dividends Distributable 340 Retained Earnings 351 Cash Dividends 352 Stock Dividends 390 Income Summary REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 515 Credit Card Expense 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Rent Expense 534 Insurance Expense 535 Supplies Expense 536 Organizational Expenses 561 Depreciation Expense-Building 562 Depreciation Expense-Equipment 590 Miscellaneous Expense 710 Interest Expense

Explanation / Answer

Paid-In Capital from Sale of Treasury Stock [($30 - $28) * 3,000 shares

Date Accounts Titles & Explanation Debit ($) Credit($) February 1 Treasury Stock ( 7,500 shares * $30 per share) 225,000 Cash 225,000 March 15 Cash ($4,500 * $34 per share) 153,000 Treasury Stock ( 4,500 shares * $30 per share) 135,000 Paid-In Capital from Sale of Treasury Stock [($34-$30) * 45,00] 18,000 June 2 Cash ($3,000 * $28 per share) 84,000

Paid-In Capital from Sale of Treasury Stock [($30 - $28) * 3,000 shares

6,000 Treasury Stock ( 3,000 shares * $30 per share) 90,000

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