During 2014 the following selected transactions affecting stockholders’ equity o

Question

During 2014 the following selected transactions affecting stockholders’ equity occurred for TARP Corporation: a. Feb. 1 Purchased in the open market 240 shares of the company’s own common stock at $27 cash per share. b. Jul. 15 Sold 80 of the shares purchased on February 1 for $28 cash per share. c. Sept. 1 Sold 50 more of the shares purchased on February 1 for $26 cash per share. Required: 1. Prepare the journal entry required for each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Explanation / Answer

a. Feb.1 Tearsury Stock Debit $6480 (240* $27)

Cash Credit $6480

b. July 15 Cash Debit $2240 (80* $28)

Tearsury Stock Credit $2160 (80* $27)

Additional Paid up capital Credit $80

c. Sept.1 Cash Debit $1300 (50* $26)

Additional Paid up capital Debit $ 50   

Treasury Stock Credit $1350 (50*$27)

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