Answer:
May 27
Dr Treasury Stock $390,000
Cr Cash $390,000
Aug. 3
Dr Cash $432,000
Cr Treasury Stock $288,000
Cr Paid-In Capital from Sale of Treasury Stock $144,000
Nov. 14
Dr Cash $85,000
Dr Paid-In Capital from Sale of
Treasury Stock $17,000
Cr Treasury Stock $102,000
Explanation:
Preparation of the journal entries of May 27, August 3, and November 14.
May 27
Dr Treasury Stock $390,000
(65,000 shares × $6)
Cr Cash $390,000
Aug. 3
Dr Cash $432,000
(48,000 shares × $9)
Cr Treasury Stock $288,000
(48,000 shares × $6)
Cr Paid-In Capital from Sale of Treasury Stock $144,000
[48,000 shares × ($9– $6)]
Nov. 14
Dr Cash $85,000
(17,000 shares × $5)
Dr Paid-In Capital from Sale of
Treasury Stock $17,000
[17,000 shares × ($6 – $5)]
Cr Treasury Stock $102,000
(17,000 shares *$6)
(65,000 shares-48,000 shares=17,000 shares )
