DO IT! 11.2b Corp. purchased it's own "already-issued (publicly traded in the open market - Wall Street) stock through a broker. Aug01... bought 2,000 shares of its $10 par value common stock for $130,000. It will hold these shares in the corporate treasury until resold. Dec01... corp. sold 1,200 shares of treasury stock for cash at $72 per share. Journalize the treasury stock transactions. Aug 01 Dec 01 "Treasury Stock" is a special accounting designation. It only exists IF a corp buys back its' own stock (on Wall street paying the going "market" rate). Since the corp now owns itself (Treasury Stock), those specific shares no longer vote or "count" as outstanding. If corp sells its' "Treasury Stock to others (via the open market - Wall Street) the stock reverts to regular common stock