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On January 2, Pharro Corporation was authorized to issue 500,000 shares of $1 par value common stock. Pharro issued 125,000 shares of common stock on
On January 2, Pharro Corporation was authorized to issue 500,000 shares of $1 par value common stock. Pharro issued 125,000 shares of common stock on January 8 at $10 per share. In addition, the company completed the following transactions during the year. Mar. 30: Purchased 12,500 shares of common stock for the treasury at $12 per share. Apr. 20: Purchased 12,500 shares of common stock for the treasury at $9 per share. Oct. 31 : Sold 20,000 shares of treasury stock at $11 per share. Required a. Record the entry on March 30 for the purchase of common shares for the treasury. b. Record the entry on April 20 for the purchase of common shares for the treasury. c. Record the entry on October 31 for the sale of treasury shares at \$11 per share. Assume a FIFO cost flow in accounting for the sale of treasury shares. d. Repeat part c but instead assume a weighted average cost flow in accounting for the sale of treasury shares
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