Question

Oregon Outfitters issues 1,300 shares of $1 par value common stock at $21 per share. Later in the year, the company decides to repurchase 250 shares at a cost of $20 per share.
(1) Record the original issue of the 1,300 shares,
(2) Record the repurchase of 250 shares, and
(3) Record the entry if Oregon Outfitters reissues the 250 shares of treasury stock at $27 per share. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the original issue of the 1,300 shares.

Answer 1

Answer and Explanation:

The Journal entry is shown below:-

1. Cash Dr, $27,300

(1,300 × $21)  

      To Common Stock $1,300  

       To Paid in capital in excess of par-Common Stock $26,000

(Being issue of common stock is recorded)

2.Treasury stock Dr, $5,000

(250 × $20)

        To Cash  $5,000

(Being repurchase of treasury stock is recorded)

3. Cash Dr, $6,750

(250 × $27)

      To Treasury stock $5,000

(250 × $20)

      To Paid in capital-Treasury stock $1,750

(Being reissue of treasury stock is recorded)