7 On January 3 Halsall Corporation purchased 2400 shares of

7. On January 3, Halsall Corporation purchased 2,400 shares of the company\'s $4 par value common stock as treasury stock, paying cash of $7 per share. On January 30, Halsall soid 1,100 shares of the treasury stock for cash of $11 per share. Journalize these transactions. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Jan. 3 Journalize the sale of treasury stock shares Date Accounts and Explanation Debit Credit Jan. 30 Choose from any list or enter any number in the input fields and then continue to the next question

Solution

IN THE BOOKS OF HALSALL    JOURNAL ENTRY Date Particulars Debit Amount ($) Credit Amount ($) Jan-03    Investment in Tressury Stock A/c …… Dr.      (2400 X $7) 16800          To Cash A/c 16800    (Being amount invested in tressury stock and paid in cash) Jan-30    Cash A/c ……………………………………………. Dr.    (1100 X $11) 12100          To Investment in Tressury Stock A/c      (1100 X $7) 7700          To Profit & Loss A/c (profit on sale of investment) 4400                                                                                         (1100 X $4) (Being Investment in tressury stock sold at a profit of $4 per stock)