After being in business for several years and issuing its common stock to the pu

Question

After being in business for several years and issuing its common stock to the public, Amazing, Inc., completed the following treasury stock transactions: 0 Click the icon to view the transactions.) Read the requirements. Requirement 1. Journalize these transactions. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries.) Begin by journalizing the purchase of the treasury stock. Journal Entry Accounts Debit Credit a. a. Purchased 2,100 shares of the company's S3 par common stock as treasury stock, paying cash of 513 per share Sold 1,600 shares of the treasury stock for cash of $16 per share b. Now let's journalize the sale of the treasury stock. Journal Entry Print Done Accounts Debit Credit b.

Explanation / Answer

Requirement 1 : Journal entries

Requirement 2 :

Treasury stock is contra equity account.

Balance sheet presentation:

Stockholder's equity:

Less: Treasury stock 500 shares at cost 6500

No accounts & explanation debit credit Treasury stock a/c (2100*13) 27300 Cash a/c 27300 (To record treasury stock) b) Cash a/c (1600*16) 25600 Treasury stock a/c (1600*13) 20800 Paid in capital from sale of treasury stock (1600*3) 4800 (To record sale of treasury stock)

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

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