Buffalo Inc. has outstanding 11,500 shares of $10 par value common stock. On Jul
ID: 2607750 • Letter: B
Question
Buffalo Inc. has outstanding 11,500 shares of $10 par value common stock. On July 1, 2017, Buffalo reacquired 111 shares at $87 per share. On September 1, Buffalo reissued 60 shares at $95 per share. On November 1, Buffalo reissued 51 shares at $85 per share. Prepare Buffalo's journal entries to record these transactions using the cost method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit CreditExplanation / Answer
Date
Accounts
Dr
Cr
1 Jul 2017
Treasury stock (111*87)
9657
Cash
9657
1 Sep 2017
Cash (60 * 95)
5700
Treasury stock (87 * 60)
5220
Paid in capital from treasury stock
480
1 Nov 2017
Cash (51 * 85)
4335
Paid in capital from treasury stock (87 – 85)* 51
102
Treasury stock
4437
--------------------------------------------------------------------------------------------------------------------------
Hope that helps.
Feel free to comment if you need further assistance J
Date
Accounts
Dr
Cr
1 Jul 2017
Treasury stock (111*87)
9657
Cash
9657
1 Sep 2017
Cash (60 * 95)
5700
Treasury stock (87 * 60)
5220
Paid in capital from treasury stock
480
1 Nov 2017
Cash (51 * 85)
4335
Paid in capital from treasury stock (87 – 85)* 51
102
Treasury stock
4437
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.