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    E3-4 On January 1, 2002, the stockholders' equity section of Ted Parge Corporation shows:
    common stock ($5 par value) $1,500,000; paid-in capital in excess of par value $1,000,000; and
    retained earnings $1,200,000. During the year, the following treasury stock transactions occurred.
    Mar. 1 Purchased 50,000 shares for cash at $14 per share.
    July 1 Sold 10,000 treasury shares for cash at $16 per share.
    Sept. 1 Sold 8,000 treasury shares for cash at $13 per share.
    (a) Journalize the treasury stock transactions.
    (b) Restate the entry for September 1, assuming the treasury shares were sold at $11 per share.

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    Solution Preview

    Hi there,
    <br>Here are your entries:
    <br>Mar 1, 2002
    <br>50,000 X $14 = 700,000
    <br>DR: Purchase of shares 700,000
    <br>CR: Cash 700,000
    <br>(Note: remember, in this case, they are buying back their shares, ...

    Solution Summary

    This problem involves the fundamentals of accounting