Elroy Corporation repurchased 4,000 shares of its own stock for $30 per share. T

Question

Elroy Corporation repurchased 4,000 shares of its own stock for $30 per share. The stock has a par of $10 per share. A month later Elroy resold 900 shares of the treasury stock for $32 per share Required a. Record the two events in genera journal format. (lf no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 Record the repurchase of own stock. Note: Enter debits before credits. Event General Journal DebitCredit Record entry Clear entry View general journal b. What is the balance of the treasury stock account after these transactions? Balance of treasury stock

Explanation / Answer

Journal entry :

b) Balance of treasury stock = (120000-27000) = 93000

Date accounts & explanation debit credit Treasury stock a/c 120000 Cash a/c 120000 (To record treasury stock purchased) Cash a/c 28800 Treasury stock a/c 27000 Paid in capital from sale of treasury stock    1800 (To record sale of treasury stock)

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.