please show all calculations thanks x company originally iss

please show all calculations, thanks!

x company originally issued its 5,000 common shares at $25 per share and all were still outstanding as of July 1, 2015.

Prepare general journal entries to record the following:

1) July 1, 2015 - Purchased and retired 500 common shares at $23 per share.

2) Aug. 1, 2015 - Purchased and retired another 500 common shares at $30 per share.

Solution

Answers

Date

General Journal

Debit

Credit

Working

01-Jul-15

Treasury Stock

$                                         11,500.00

[500 shares x $ 23]

Cash

$                     11,500.00

[500 shares x $ 23]

(shares brought back)

01-Jul-15

Common Stock

$                                         12,500.00

[500 shares x $25 par]

Treasury Stock

$                     11,500.00

[500 shares x $ 23]

Retained earnings

$                       1,000.00

[500 shares x $ 2]

(shares retired)

01-Aug-15

Treasury Stock

$                                         15,000.00

[500 shares x $ 30]

Cash

$                     15,000.00

[500 shares x $ 30]

(shares brought back)

01-Aug-15

Common Stock

$                                         12,500.00

[500 shares x $25 par]

Retained earnings

$                                           2,500.00

[500 shares x $ 5]

Treasury Stock

$                     15,000.00

[500 shares x $ 30]

(shares retired)