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    Journal Entries and Treasury Stock Transactions

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    A company reported the following stockholders' equity on January 1 of the current year:

    Common stock, $10 par, 1,000,000 shares
    authorized, 400,000 shares issued ------------------------- $4,000,000
    Paid- in capital in excess of par, common------------------- 1,200,000
    Retained earnings----------------------------------------------- 1,600,000
    Total stockholders' equity------------------------------------- $6,800,000

    Prepare journal entries for the following selected transactions related to 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.

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    https://brainmass.com/business/accounting/journal-entries-treasury-stock-transactions-387639

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    Prepare journal entries for the following selected transactions related to this company's stock during the current year.

    Mar. 1 Purchased 10,000 shares of treasury stock for $17 per share.

    The entry is
    Mar. 1 Treasury Stock Dr 170,000
    Cash Cr 170,000

    May 5 Sold 4,000 shares of treasury ...

    Solution Summary

    The solution assists in preparing journal entries for the treasury stock transactions.

    $2.19