Answer:
a.
March 9
Dr Treasury Stock - Common stock 456,000
Cr Cash 456,000
( to record the reacquired of 12,000 common stock at $38 each)
June 9
Dr Cash 311,600
Cr Treasury stock 288,800
Cr Paid-in capital 22,800
( to record the sell of 7,600 reacquired common stocks at $41 each)
November 13
Dr Cash 118,900
Cr Treasury stock 110,200
Cr Paid-in capital 8,700
( to record the sell of 2,900 reacquired common stocks at $41 each)
b.
The balance of paid-in capital from sales of treasury stock = 8,700 + 22,800 = 31,500 Credit
Explanation:
Calculation notes:
a.
March 9: The cash spent on reacquired common stock = 12,000 x 38 = $456,000
June 9: Cash receipt on sell of treasury common stock = 7,600 x 41 = 311,600; which will Credited $288,800 into Treasury stock account ( 38 x 7,600) and Credited $22,800 ( (41-38) x 7,600) into Paid-in capital account.
Nov 13 : Cash receipt on sell of treasury common stock = 2,900 x 41 = 118,900; which will Credited $110,200 into Treasury stock account ( 38 x 2,900) and Credited $8,700 ( (41-38) x 2,900) into Paid-in capital account.
b. Calculation is shown above
