Answer:
7/1/20
Dr Treasury Stock $18,200
Cr Cash $18,200
9/1/20
Dr Cash $8,160
Cr Treasury Stock $7,280
Cr Paid-in Capital - Treasury Stock $880
1/1/20
Dr Cash $8,400
Dr Paid-in Capital - Treasury Stock $2,520
Cr Treasury Stock
Explanation:
Preparation of Sprinkle's journal entries to record these transactions using the cost method.
7/1/20
Dr Treasury Stock $18,200
(200 shares * $91 per share)
Cr Cash $18,200
(Being To record the reacquired 200 shares)
9/1/20
Dr Cash $8,160
(80 shares * $102 per share)
Cr Treasury Stock $7,280
(80 shares * 91 per share)
Cr Paid-in Capital - Treasury Stock $880
($8,160-$7,280)
(Being To record the reissue of treasury stock)
1/1/20
Dr Cash $8,400
(120 shares * $70per share)
Dr Paid-in Capital - Treasury Stock $2,520
($91- $70 = $21* 120 shares)
Cr Treasury Stock
(120 shares * $91 per share) $10,920
(Being To record the reissue of treasury stock)
