7 On January 3 Puritan Corporation purchased 1850 shares of

7. On January 3, Puritan Corporation purchased 1,850 shares of the company\'s $1 par value common stock as treasury stock, paying cash of $10 per share. On January 30, Puritan sold 1,200 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.) Journalize the purchase of the treasury stock. Date Accounts and Explanation Debit Credit Jan. 3 Journalize the sale of treasury stock shares. Date Accounts and Explanation Debit Credit Jan. 30

Solution

3-Jan Treasury stock 18500          Cash 18500 30-Jan Cash 13200       Treasury stock 12000       Paid in capital-Treasury stock 1200