eeMaindoinvokers eBook Show Me How Calculator Treasury Stock

eeMain.do?invokers eBook Show Me How Calculator Treasury Stock Transactions SprayCo Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On March 9 of the current year, SprayCo reacquired 62,000 shares of its common stock at $S1 per share on June 9 48,000 of the reacquired shares were sold at S60 per share, and Novembe·250 the reacquired shares were sold at $54. a. Journalize the transactions of March 9, June 9, and November 13. For a compound transaction, if an amount box does not require an entry, leave it blank Mar. 9 June 9 Nov. 13 b. What is the balance in Paid-1n Capital from Sale of Treasury Stock on December 31 of the current year? PreviousNext Check My Work 635 PM @rP^4gl e: 0 0

Solution

a.

Journal entries

Date Particulars Debit($) Credit($)

March 9 Treasury stock(62000 * $51) $3162000

To cash $3162000

June 9 Cash (48000 * $60) $2880000

To treasury stock(48000 * $51) $2448000

To paid in capital $432000

Nov 13 Cash (7500 * $54) $405000

To treasury stock (7500 * $51) $382500

To paid in capital $22500

b. Total paid in capital from sale of treasury stock = $454500 ($432000 + $22500).