Answer:
Explanation:
The journal entries are shown below:
a. Treasury stock A/c Dr $156,000 (6,000 shares × $26)
To Cash A/c $156,000
(Being the purchase of treasury stock is recorded)
b. Cash A/c Dr $116,000 (4,000 shares × $29)
To Treasury Stock A/c $10,4000 (4,000 shares × $26)
To Paid in capital - Treasury stock $12,000
(Being treasury stock is sold at higher price and the remaining amount would be credited to the paid in capital account)
c. Cash A/c Dr $44,000 (2,000 shares × $22)
Paid in capital - Treasury stock $8,000
To Treasury Stock A/c $52,000 (2,000 shares × $26)
(Being treasury stock is sold at lower price)
