100 shares of treasury stock at 25 SolutionJournal Entries T

100 shares of treasury stock at $25.

Solution

Journal Entries

Transaction No

General Journal

Debit

Credit

a

Cash

$     56,000.00

              Common Stock

$   10,000.00

              Additional Paid in Capital

$   46,000.00

(Common stock issued at Premium)

b

Equipment

$     21,000.00

              Common Stock

$   14,000.00

              Additional Paid in Capital

$     7,000.00

(Common stock issued at Premium)

c

Treasury Stock

$       2,500.00

            Cash

$     2,500.00

(Treasury stock Purchased)

d

Cash

$       3,000.00

        Treasury stock

$     2,500.00

         Paid in capital from treasury stock

$         500.00

(Treasury stock sold )

Notes

Journal Entries
Transaction No	General Journal	Debit	Credit
a	Cash	$     56,000.00
	Common Stock		$   10,000.00
	Additional Paid in Capital		$   46,000.00
	(Common stock issued at Premium)
b	Equipment	$     21,000.00
	Common Stock		$   14,000.00
	Additional Paid in Capital		$     7,000.00
	(Common stock issued at Premium)
c	Treasury Stock	$       2,500.00
	Cash		$     2,500.00
	(Treasury stock Purchased)
d	Cash	$       3,000.00
	Treasury stock		$     2,500.00
	Paid in capital from treasury stock		$         500.00
	(Treasury stock sold )