Buffalo Inc has outstanding 11500 shares of 10 par value com

Buffalo Inc. has outstanding 11,500 shares of $10 par value common stock. On July 1, 2017, Buffalo reacquired 111 shares at $87 per share. On September 1, Buffalo reissued 60 shares at $95 per share. On November 1, Buffalo reissued 51 shares at $85 per share. Prepare Buffalo\'s journal entries to record these transactions using the cost method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select No Entry\" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit

Solution

Date

Accounts

Dr

Cr

1 Jul 2017

Treasury stock (111*87)

9657

Cash

9657

1 Sep 2017

Cash (60 * 95)

5700

Treasury stock (87 * 60)

5220

Paid in capital from treasury stock

480

1 Nov 2017

Cash (51 * 85)

4335

Paid in capital from treasury stock (87 – 85)* 51

102

Treasury stock

4437

--------------------------------------------------------------------------------------------------------------------------

Hope that helps.

Feel free to comment if you need further assistance J

Date	Accounts	Dr	Cr
1 Jul 2017	Treasury stock (111*87)	9657
	Cash		9657
1 Sep 2017	Cash (60 * 95)	5700
	Treasury stock (87 * 60)		5220
	Paid in capital from treasury stock		480
1 Nov 2017	Cash (51 * 85)	4335
	Paid in capital from treasury stock (87 – 85)* 51	102
	Treasury stock		4437