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 $25 per share and 9,000 shares of $36 par value, ten percent preferred stock at $102 per share. Later, the company purchased 2,000 shares of its own common stock at $28 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 $34 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 $24 per share. Prepare the journal entry to record the sale of this treasury stock.

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General Journal Ref. Description Debit Credit a. AnswerCashPaid-in capital from treasury stockPaid-in capital in excess of par value - Common stockPaid-in capital in excess of par value - Preferred stockTreasury stock Answer Answer Common stock Answer Answer AnswerCashPaid-in capital from treasury stockPaid-in capital in excess of par value - Common stockPaid-in capital in excess of par value - Preferred stockTreasury stock Answer Answer Issued shares of common stock. AnswerCashPaid-in capital from treasury stockPaid-in capital in excess of par value - Common stockPaid-in capital in excess of par value - Preferred stockTreasury stock Answer Answer 10% Preferred stock Answer Answer AnswerCashPaid-in capital from treasury stockPaid-in capital in excess of par value - Common stockPaid-in capital in excess of par value - Preferred stockTreasury stock Answer Answer Issued shares of preferred stock. AnswerCashPaid-in capital from treasury stockPaid-in capital in excess of par value - Common stockPaid-in capital in excess of par value - Preferred stockTreasury stock Answer Answer AnswerCashPaid-in capital from treasury stockPaid-in capital in excess of par value - Common stockPaid-in capital in excess of par value - Preferred stockTreasury stock Answer Answer Acquired shares of common stock. b. AnswerCashPaid-in capital from treasury stockPaid-in capital in excess of par value - Common stockPaid-in capital in excess of par value - Preferred stockTreasury stock Answer Answer Treasury stock Answer Answer AnswerCashPaid-in capital from treasury stockPaid-in capital in excess of par value - Common stockPaid-in capital in excess of par value - Preferred stockTreasury stock Answer Answer Sold shares of treasury stock. c. AnswerCashPaid-in capital from treasury stockPaid-in capital in excess of par value - Common stockPaid-in capital in excess of par value - Preferred stockTreasury stock Answer Answer Paid-in-capital from treasury stock Answer Answer AnswerCashPaid-in capital from treasuryPaid-in capital in excess of par value - Common stockPaid-in capital in excess of par value - Preferred stockTreasury stock Answer Answer Sold shares of treasury stock.

Explanation / Answer

Journal entry :

No Accounts & explanation Debit credit a. Cash a/c 1250000 Common stock a/c 200000 Paid-in capital in excess of par value - Common stock 1050000 (To record issue of common stock) Cash a/c 918000 Preferred stock a/c 324000 Paid-in capital in excess of par value - Preferred stock 594000 (To record issue of preferred stock) Treasury stock a/c 56000 Cash a/c 56000 (To record treasury stock purchased) b Cash a/c 51000 Treasury stock a/c 42000 Paid in capital fom treasury 9000 (To record sale of treasury stock shares) c Cash a/c 12000 Paid in capital from treasury 2000 Treasury stock a/c 14000 (To record Sold shares of treasury stock.)

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