Samuel Company has the following accounts in its shareholders’ equity section at the beginning of the current year:
Common stock ($ 1 par, 1,000,000 shares authorized, 600,000 shares issued and outstanding) ……………………………………………….................................$ 600,000
Additional paid- in capital in excess of par – common …………..1,800,000
Retained earnings ………………………………………………...... 2,000,000
Required
Prepare the jurnal entries required to record the following share buyback transactions, assuming that Samuel Company holds the shares in the treasury using the cost method:
Samuel reacquired 20,000 shares to hold as treasury stock, paying $8.25 per share.
Samuel sold 10,000 of the shares for $11.50 per share.
Samuel reissued the remaining 10,000 shares for $4.10 per share.