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Journal Entries and Treasury Stock Transactions

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See the attached file.
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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Solution Summary

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

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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 ...

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