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Journal entries

Present entries (journalize the transactions) to record the following:

a. Purchased 1000 shares of treasury stock at $13. The treasury stock is accounted for by the cost method
b. Sold 500 shares of treasury stock at $15
c. Purchased equipment for $75,000, paying $25,000 in cash and issuing 4000 shares of common stock for the equipment.
d. Sold 500 shares of treasury stock at $11

Solution Preview

a)
Treasury Stock 13,000
Cash 13,000

b)
Cash 7,500
...

Solution Summary

The solution provides journal entries for the below scenario.

$2.19