6. Accounting for Treasury Stock (9 points)

On 5 June 2023 Arsenal Company reacquired 800,000 of its common shares in the market at $57 per share. The par value per share is $0.50. On 19 August 2023, Arsenal sold 600,000 treasury shares at an average price of $63 per share. Arsenal sold the remaining shares at $35 per share on 22 December 2023. Assume there is no balance in Paid-in Capital from Treasury Stock on 19 August 2023.

Required - Provide journal entries for these transactions (5 June, 19 August, 22 December) using the cost method of accounting for treasury stock.

6. Accounting for Treasury Stock ( 9 points) On 5 June 2023 Arsenal Company reacquired 800,000 of its common shares in the market at $57 per share. The par value per share is $0.50. On 19 August 2023, Arsenal sold 600,000 treasury shares at an average price of $63 per share. Arsenal sold the remaining shares at $35 per share on 22 December 2023. Assume there is no balance in Paid-in Capital from Treasury Stock on 19 August 2023. Required - Provide journal entries for these transactions (5 June, 19 August, 22 December) using the cost method of accounting for treasury stock