Question

Roca Company originally issued 30,000 shares of $5 par common stock for $240,000 on January 3, 2020. Roca purchased 1,500 shares of treasury stock for $15,000 on November 2, 2020. On December 6, 2020, 600 shares of the treasury stock are sold for $7,200. Prepare journal entries to record these stock transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Answer 1

Answer:

Date   Particulars                                    Debit          Credit

Jan 3  Cash                                           $240,000

                Common stock (30000*5)                       $150,000

                Paid-in-capital in excess                          $90,000

Nov 2  Treasury stock                            $15,000

                  Cash                                                         $15,000

Dec 6  Cash                                              $7,200

                  Treasury stock[75000/1500*600)          $6,000

                   Paid in capital from treasuty cash          $1,200