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    Treasury Stock Transactions - Journal Entry

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    E3-4. ...
    (a) Journalize the treasury stock transactions
    (b) Restate the entry for Sept 1, assuming the treasury shares were sold at ...

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    Solution Preview

    The answers and explanations are in the attached file
    Date Particulars Dr Cr This is for purchase of 50000
    Mar 1 Treasury Stock 700,000 treasury stock at $14
    Cash 700,000

    July 1 Cash 160,000
    Treasury Stock 140,000 This figure is with $14, the purchase price
    Paid in Capital from Sale of Treasury Stock 20,000 The difference goes to Paid in Capital

    Sep 1 Cash 104,000
    Paid in Capital from Sale of Treasury Stock 8,000 ...

    Solution Summary

    The solution provides journal entries for treasury stock, capital stock and the effect of stock dividend and stock split on total equity