Discount Center Furniture, Inc , completed the following treasury stock transactions (a) Purchased 1,400 shares of the companys $1 par common stock as treasury stock, paying cash of $5 per share (b) Sold 400 shares of the treasury stock for cash of $8 per share Requirements 1 Journalize these trans...

Req 1 Journal Entry ACCOUNTS AND EXPLANATIONS POST REF DEBIT CRE ...

Discount Center Furniture, Inc., completed the following treasury stock transactions: (a) Purchased 1,400 shares of the companys

Question:

Discount Center Furniture, Inc., completed the following treasury stock transactions:
(a) Purchased 1,400 shares of the company’s $1 par as treasury stock, paying cash of $5 per share.
(b) Sold 400 shares of the treasury stock for cash of $8 per share.
Requirements
1. Journalize these transactions. Explanations are not required.
2. Show how Discount Center will report treasury stock on its December 31, 2012 after completing the two transactions. In reporting the treasury stock, report only on the Treasury stock account. You may ignore all other accounts.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...