A corporation purchased for cash 5,000 shares of its own $10 par common stock at $25 a share. In the following year, it sold 2,000 of the treasury shares at $28 a share for cash.
(a) Journalize the entries to record the purchase (treasury stock is recorded at cost).
(b) Journalize the entries to record the sale of the stock.
Debit Treasury Stock, Common $125000
Credit Cash ...
Journal entries shown