On April 2 a corporation purchased for cash 6,000 shares of its own $13 par common stock at $26 per share. It sold 4,000 of the treasury shares at $29 per share on June 10. The remaining 2000 shares were sold on November 10 for $22 per share.

a. Journalize the entries to record the purchase (treasury stock is recorded at cost). Apr. 2

b. Journalize the entries to record the sale of the stock. If an amount box does not require an entry, leave it

The journal entries are shown below:

a. Treasury stock A/c Dr $156,000 (6,000 shares * $26)

To Cash A/c $156,000

(Being the purchase of treasury stock is recorded)

b. Cash A/c Dr $116,000 (4,000 shares * $29)

To Treasury Stock A/c $10,4000 (4,000 shares * $26)

To Paid in capital - Treasury stock $12,000

(Being treasury stock is sold at higher price and the remaining amount would be credited to the paid in capital account)

c. Cash A/c Dr $44,000 (2,000 shares * $22)

Paid in capital - Treasury stock $8,000

To Treasury Stock A/c $52,000 (2,000 shares * $26)

(Being treasury stock is sold at lower price)