Question

On January 2, 2016, Alpha Corporation issued 15,000 shares of $10 par value common stock for $15 per share. On March 1, 2016, Alpha reacquired 1,000 of these shares when they were trading $20 each. September 1, 2016, when the market was soaring, Alpha reissued 500 shares of treasury stock at the going market rate of $25 per share. Use this information to prepare the General Journal entry (without explanation) for September 1.

Answer 1

Answer:

Given:

On January 2, 2016:

Issued 15,000 shares of $10 par value

Common stock for $15 per share

On March 1, 2016: Alpha reacquired 1,000 of these shares when they were trading $20 each.

On September 1, 2016: Alpha reissued 500 shares of treasury stock at the going market rate of $25 per share.