eeMain.do?invokers eBook Show Me How Calculator Treasury Stock Transactions Spra
ID: 2606927 • Letter: E
Question
eeMain.do?invokers eBook Show Me How Calculator Treasury Stock Transactions SprayCo Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On March 9 of the current year, SprayCo reacquired 62,000 shares of its common stock at $S1 per share on June 9 48,000 of the reacquired shares were sold at S60 per share, and Novembe·250 the reacquired shares were sold at $54. a. Journalize the transactions of March 9, June 9, and November 13. For a compound transaction, if an amount box does not require an entry, leave it blank Mar. 9 June 9 Nov. 13 b. What is the balance in Paid-1n Capital from Sale of Treasury Stock on December 31 of the current year? PreviousNext Check My Work 635 PM @rP^4gl e: 0 0Explanation / Answer
a.
Journal entries
Date Particulars Debit($) Credit($)
March 9 Treasury stock(62000 * $51) $3162000
To cash $3162000
June 9 Cash (48000 * $60) $2880000
To treasury stock(48000 * $51) $2448000
To paid in capital $432000
Nov 13 Cash (7500 * $54) $405000
To treasury stock (7500 * $51) $382500
To paid in capital $22500
b. Total paid in capital from sale of treasury stock = $454500 ($432000 + $22500).
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