Ramos Corporation had the following stockholders equity acco

Ramos Corporation had the following stockholder\'s equity accounts on January 1,2019 Common Stock $500,000. Paid-in Capital in Excess of Par Value $200,000. and Retained Earnings $100,000. In 2017 the company had the following treasury stock transactions Mar. 1 Purchased 5,000 shares for the treasury at $8 per share shares for $12 per share. Sept.1. Dec. 1. Then sold 2,000 treasury stock shares at $7 per share Again it sold 1,000 treasury stock shares at $5 per share. Instructions: Journalize the TREASURE STOCK transactions. GENERAL JOURNAL CREDIT DEBIT DESCRIPTION DATE

Solution

a Mar 1 Treasury Stock $40,000 Cash $40,000 Jun 1 Cash $12,000 Treasury Stock $8,000 Paid-in Capital from Treasury $4,000 Sep 1 Cash $14,000 Paid-in Capital from Treasury $2,000 Treasury Stock $16,000 Dec 1 Cash $5,000 Paid-in Capital from Treasury $3,000 Treasury Stock $8,000 b Cash 10000 Accounts Receivable 12000 Equipment 13000 Allowance for doubtful accounts 1000 Salaries and wages payable 1000 Accounts Payable 5000 R. Marden, Capital 28000 To record R. Marden’s investment