Treasury Stock Transactions Including Retirement The following stock transaction

Question

Treasury Stock Transactions Including Retirement

The following stock transactions of Carmel Corporation represent all its treasury stock transactions for the year:

Record Carmel Corporation's stock transactions using T accounts. If an amount is zero, enter "0

What are the values to be entered next to the red X?

June 1   Purchased 1,000 shares of its own $30 par value common stock for $70 per share, the current market price. 10   Sold 250 shares of treasury stock purchased on June 1 for $80 per share. 20   Sold 350 shares of treasury stock purchased on June 1 for $58 per share. 30   Retired the remaining shares purchased on June 1. The original issue price was $42 per share.

Explanation / Answer

Cash: June 1 - 70,000 (1000 x $70)

Treasury: June 20 - 24,500 (350 x $70)

Retained Earnings: June 20 - 4,200 (350 x ($70 - $58))

Paid-in Capital: June 20 - 4,200 (350 x ($70 - $58))

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