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9 August, 15:42

Sheridan Inc. has outstanding 13,300 shares of $10 par value common stock. On July 1, 2020, Sheridan reacquired 111 shares at $86 per share. On September 1, Sheridan reissued 65 shares at $93 per share. On November 1, Sheridan reissued 46 shares at $83 per share.

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  1. 9 August, 19:00
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    DR. CR.

    July 1, 2020

    Treasury Stock $9,546

    Cash $9,546

    September 1, 2020

    Cash $6,045

    Treasury Stock $5,590

    Paid-in Capital from Treasury Stock $455

    November 1, 2020

    Cash $3,818

    Paid-in Capital Treasury Stock $138

    Treasury Stock $3,956

    Explanation:

    Shared Repurchased are known as Treasury shares and return received on its sale is added to paid-in capital Treasury stock and loss deducted from same.

    Working:

    July 1, 2020

    Treasury Stock = 111 x 86 = $9,546

    September 1, 2020

    Cash received = 65 x $93 = $6,045

    Treasury Stock = 65 x 86 = $5,590

    November 1, 2020

    Cash received = 46 x $83 = $3,818

    Treasury Stock = 46 x 86 = $3,956
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