Answer:
Journal Entry
Explanation:
The Journal Entry is shown below:-
1. Treasury Stock $2,400 (100 Shares × $24)
To Cash $2,400
(Being treasury stock is recorded)
2. Cash Dr, $825 (25 shares × $33)
To Treasury Stock $600 (25 shares × Cost $24)
To Additional Paid in Capital-Treasury Stock $225
(Being the sale of acquired share is recorded)
3. Cash Dr, $550 (25 shares × $22)
Additional Paid in Capital-Treasury Stock Dr, $50
To Treasury Stock $600 (25 shares × Cost $24)
(Being the sale of acquired share is recorded)
4. Common Stock Dr, $250 (50 Shares × $5 par value)
Additional Paid in Capital-Treasury Stock Dr, $175 (225 - $50)
Retained Earnings Dr, $775
To Treasury Stock $1,200 ($2400 - $600 - $600)
(Being retired share is recorded)
