Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On January 1, 2020, the stockholders' equity section of Larkspur, Inc. shows common stock ($7 par value) $2,100,000; paid-in capital in excess of per $1,010,000;
On January 1, 2020, the stockholders' equity section of Larkspur, Inc. shows common stock ($7 par value) $2,100,000; paid-in capital in excess of per $1,010,000; and retained earnings $1,190,000. During the year, the following treasury stock transactions occurred. Mar. 1 Purchased 49,000 shares for cash at $15 per share. July 1 Sold 11.500 treasury shares for cash at $17 per share. Sept. 1 Sold 10.500 treasury shares for cash at $14 per share. Your Answer Correct Answer (Used) Journalize the treasury stock transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Credit Date Mar. 1 Account Titles and Explanation Treasury Stock Debit 735.000 Cash 735,000 July 1 Cash 195,500 Pald-in Capital from Treasury Stock 23.000 Treasury Stock 172.500 Sept. 1 Cash 147.000 Pald-in Capital from Treasury Stock 10.500 Treasury Stock 157.500 Restate the entry for September 1, assuming the treasury shares were sold at $11 per share. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started