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27 March, 11:43

Prior to June 30, a company has never had any treasury stock transactions. A company repurchased 100 shares of its $1 par common stock on June 30 for $40 per share. On July 20, it reissued 50 of these shares at $46 per share. On August 1, it reissued 20 of the shares at $38 per share. What is the journal entry necessary to record the repurchase of stock on June 30?

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  1. 27 March, 14:19
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    June 30, repurchase of 100 shares:

    Dr Treasury stock 4,000

    Cr Cash 4,000

    Explanation:

    The other journal entries should be as follows

    July 20, resale of 50 shares:

    Dr Cash 2,300

    Cr Treasury stock 2,000

    Cr Additional paid in capital 300

    August 1, resale of 20 shares:

    Dr Cash 760

    Dr Additional paid in capital 40

    Cr Treasury stock 800
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Home » Business » Prior to June 30, a company has never had any treasury stock transactions. A company repurchased 100 shares of its $1 par common stock on June 30 for $40 per share. On July 20, it reissued 50 of these shares at $46 per share.
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