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    Journal entries - treasury stock

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    Gore Inc. has outstanding 10,000 shares of $10 par value common stock. On July 1, 2008, Gore reacquired 100 shares at $85 per share. On September 1, Gore reissued 60 shares at $90 per share. On November 1, Gore reissued 40 shares at $83 per share. Prepare Gore 's journal entries to record these transactions using the cost method.

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    Solution Preview

    Under the cost method the treasury stock is recorded at the amount paid to acquire the treasury stock. On reissue, the treasury stock account is reduced by the acquiring price and not by the price at which the stock is sold. The ...

    Solution Summary

    This solution explains the given journal entries relating to treasury stock.