Salon Company originally issued 4,000 shares of $10 par valuecommon stock for $120,000 ($30 per share). Salon subsequentlypurchases 400 shares of treasury stock for $27 per share andresells the 400 shares of treasury stock for $29 per share. In theentry to record the sale of the treasury stock, there will be a
credit to Common Stock for $10,800.
credit to Treasury Stock for $4,000.
debit to Paid-In Capital in Excess of Par of $12,000.
credit to Paid-In Capital from Treasury Stock for $800.
Salon Company originally issued 4,000 shares of $10 par valuecommon stock for $120,000 ($30 per share). Salon subsequentlypurchases 400 shares of treasury stock for $27 per share andresells the 400 shares of treasury stock for $29 per share. In theentry to record the sale of the treasury stock, there will be a
credit to Common Stock for $10,800. | ||
credit to Treasury Stock for $4,000. | ||
debit to Paid-In Capital in Excess of Par of $12,000. | ||
credit to Paid-In Capital from Treasury Stock for $800. |
Related questions
1. A company purchases 1,000 shares of its $10 par value common stock when the market price per share is $25. The entry to record the treasury stock purchase is:
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2. Tri-City Corporation reports on its balance sheet 1,000 shares of $100 par value, 5%, cumulative, preferred stock; 6,000 shares issued, 5,000 outstanding, of $10 par value common stock; Additional Paid-in Capital, Common of $40,000; 1,000 shares of Treasury Stock, Common at $10,000; and Retained Earnings of $80,000. The preferred shares are callable at $110, and no dividends are in arrears.
The book value per share of Tri-City's common stock is
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3.Johanna Corporation issues 1,000 shares of $20 par value stock for $50,000. The entry to record the stock issue is:
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A company reported the following stockholder's equity on January1 of the current year:
Common stock, $10 par, 1,000,000 shares authorized, 400,000shares issued | $4,000,000 |
Paid-in capital in excess of par, common | 1,200,000 |
Retained earnings | 1,600,000 |
Total stockholdersâ equity | $6,800,000 |
Prepare journal entries for the following selected transactionsrelated this company's stock during the current year:
Mar. 1 | Purchased 10,000 shares of treasury stock for $17 per share. |
May 5 | Sold 4,000 shares of treasury stock for $16 per share. |
Oct. 12 | Sold 2,000 shares of treasury stock for $18 per share. |
