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Chapter 13: Q3TI (page 685)

On January 3, Halsall Corporation purchased 2,000 shares of the company’s \(2 par value common stock as treasury stock, paying cash of \)8 per share. On January 30, Halsall sold 1,200 shares of the treasury stock for cash of $10 per share. Journalize these transactions.

Short Answer

Expert verified

Treasury stock debited by $16,000 and Cash credited by $16,000.

Cash debitedby $12,000, Treasury Stock credited by$9,600 andPaid in capital in excess of parcreditedby $2,400 ()

Step by step solution

01

Basic calculation

TreasuryStockonJan3=NumberofShare×ValuePerShare=2,000×$8=$16,000
TreasuryStockonJan30=NumberofShare×ValuePerShare=1,200×$8=$9,600

PaidinCapitalExcessofPar=NumberofShare×ValuePerShare=1,200×$8=$9,600

02

Journals-

Date

Transaction

Debit

Credit

Jan 3

Treasury stock

$16,000

Cash

$16,000

To record purchase of treasury stock

Jan 30

Cash

$12,000

Treasury Stock

$9,600

Paid in capital in excess of par

$2,400

To record sold treasury stock.

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Most popular questions from this chapter

Journalizing treasury stock transactions and reporting stockholders’ equity

Southern Amusements Corporation had the following stockholders’ equity on

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