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Journal Entries: Common Stock Reacquired and Sold from Treasury

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Record the following transactions of a company in a general journal form:

(a) Reacquired 8,000 of its own $10 par value common stock at $40 cash per share. The stock was originally issued at $15 per share.

(b) Sold 2,000 shares of the stock reacquired under part (a) at $43 cash per share.

(c) Sold 3,000 shares of the stock reacquired under part (a) at $39 cash per share.

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In about 240 words, this solution explains the journal entries relating to common stock reacquired and then sold from the treasury. All required calculations are included.

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Record the following transactions of a company in general journal form:

(a) Reacquired 8,000 of its own $10 par value common stock at $40 cash per share.
The stock was originally issued at $15 per share.
This is a treasury stock. When treasury stock is purchased, it is recorded at the cost price. The original issue price is not relevant. The total cost ...

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