Answer: Please see explanation column for answers.
Explanation:
a)Journal to record the transactions of SprayCo Inc.
Date Account Debit Credit
march 9 Treasury stock (62,000 x $51) $3,162,000
Cash $3,162,000
June 9 Cash (48,000 x $60) $2,880.000
Treasury stock (48,000 x $51) $2,448,000
Paid in Capital from sale of treasury stock $432,000
($2,880.000- $2,448,000 )
Nov 13 Cash (7,500 x $54) $405.000
Treasury stock (7,500 x $51) $382,500
Paid in Capital from sale of treasury stock $ 22,500
($405,000- $382,500 )
b)balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year =$432,000 form June 9 + $ 22,500 from November 13 =$454,500
