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    Sunshine Corporation

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    On January1,20xx sunshine corporation had 10,000 shares of $10 par value common stock issued and outstanding.
    All 40,000 shares had been issued in a prior period at $20.00 per share. On February 1, 200xx sunshine purchased 2,000 shares of treasury stock for $23 per share and later sold the treasury shared for $21 per share on March 1, 20xx

    The journal entry to record the purchase of the treasury shares on February 1, 20xx would include a
    a. credit to Treasury Stock for $46,000
    b. debit to Treasury Stock for $46,000
    c. debit to a loss account for $6,000
    d. credit to a gain account for $6,000

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    https://brainmass.com/business/accounting-for-corporations/sunshine-corporation-146727

    Solution Preview

    On January1, 20xx sunshine corporation had 10,000 shares of $10 par value common stock issued and outstanding.

    All 40,000 shares had been issued in a prior ...

    Solution Summary

    This solution is comprised of answer to prepare the journal entry to record the purchase of the treasury shares on February 1, 20xx.

    $2.19

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