Liquidation Universe Corporation began operations in 2012. After issuing its common stock to the public, Liquidation Universe

Question:

Liquidation Universe Corporation began operations in 2012. After issuing its common stock to the public, Liquidation Universe Corporation completed the following treasury stock transactions:

a. Purchased 2,200 shares of the company’s $1 par common stock as treasury stock, paying cash of $6 per share.

b. Sold 1,000 shares of the treasury stock for cash of $9 per share.

Requirements

1. Journalize these transactions. Explanations are not required.

2. What kind of account is Treasury Stock? After completing the two transactions,how should Liquidation Universe report the treasury stock on its balance sheet?

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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Liquidation
Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due....