(a) Journalize the treasury stock transactions
(b) Restate the entry for Sept 1, assuming the treasury shares were sold at ...
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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
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 ...
The solution provides journal entries for treasury stock, capital stock and the effect of stock dividend and stock split on total equity