Answer:
Portland Corporation
Journal Entries:
August 19, 2019:
Debit Treasury Stock $12,600
Credit Cash $12,600
To record the purchase of 1,400 shares of treasury stock for $9 per share.
October 31, 2019:
Debit Cash $7,800
Credit Treasury Stock $7,800
To record the resale of 600 shares of treasury stock for $13 per share.
December 31, 2019:
Debit Cash $3,200
Credit Treasury Stock $3,200
To record the resale of 800 shares of treasury stock for $4 per share.
December 31, 2019:
Debit Additional Paid-in Capital $1,600
Credit Treasury Stock $1,600
To record the loss incurred in the sale of treasury stock.
Explanation:
a) Data and Analysis:
August 19, 2019: Treasury Stock $12,600 Cash $12,600
October 31, 2019: Cash $7,800 Treasury Stock $7,800
December 31, 2019: Cash $3,200 Treasury Stock $3,200
December 31, 2019: Additional Paid-in Capital $1,600 Treasury Stock $1,600
