Question

On May 27, Buzz Off Inc. reacquired 5,500 shares of its common stock at $23 per share. On August 3, Buzz Off sold 3,200 of the reacquired shares at $26 per share. November 14, Buzz Off sold the remaining shares at $22 per share.
Journalize the transactions of May 27, August 3, and November 14. For a compound transaction, if an amount box does not require an entry, leave it blank.
May 27_____
Aug. 3_____
Nov. 14_____

Answer 1

Answer:

May 27

Dr Treasury Stock $126,500

Cr Cash $126,500

Aug. 3

Dr Cash $83,200

Cr Treasury Stock $73,600

Cr Paid-in Capital from Sale of Treasury Stock $9,600

Nov. 14

Dr Cash $50,600

Dr Paid-in Capital from Sale of Treasury Stock $2,300

Cr Treasury Stock $52,900

Explanation:

Preparation for the Journal entries for Buzz Off Inc

May 27

Dr Treasury Stock $126,500

(5,500 × $23)

Cr Cash $126,500

Aug. 3

Dr Cash $83,200

(3,200 × $26)

Cr Treasury Stock $73,600

(3,200 × $23)

Cr Paid-in Capital from Sale of Treasury Stock $9,600[3,200 × ($26 – $23)]

Nov. 14

Dr Cash $50,600

($5,500-$3,200 × $22)

Dr Paid-in Capital from Sale of Treasury Stock $2,300

[$5,500-$3,200 × ($23 – $22)

Cr Treasury Stock $52,900

(2,300 × $23)