Garber corporation had 40,000 shares of $10 par common stock outstanding on January 1, 2016. On June

Question:

Garber had 40,000 shares of $10 par outstanding on January 1, 2016. On June 1, 2016 Garber purchased 5,000 shares of its own stock on the open market for $22 per shares and held it as treasury stock. On October 1, 2016 Garber declared and issued a 10% stock The market value of Garber's board stock was $24 per share or October 1. Garber's board of directors declared and paid a cash of $57,750 on December 15, 2016.
a) Prepare the journal entry for the treasury stock purchase.
b) Prepare the journal entry for the stock Prepare the journal entry for the cash Common Stock
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