Problem #15

Treasury Stock Transactions

The Dec. 31, 2018 shareholders' equity section of Refozar Corporation's statement of financial position is as follows:

Refozar Corporation

Partial Statement of Financial Position

December 31, 2018

Shareholders' Equity

Share Capital

Ordinary shares, P4 par, 200,000 shares authorized, 150,000 shares issued and outstanding P 600,000

Share Premium 375,000

Total Share Capital P 975,000

Retained Earnings 365,000

Total Shareholders' Equity P 1, 340,000

Required:

Prepare the journal entries to record the following transactions that took place during January 2019:

Jan 4 Purchased 24,000 shares of its own Refozar's stock for P168,000.

Jan 10 Sold 4,000 shares of the treasury stock for P9 per share.

Jan 29 Sold 14,000 shares of the treasury stock for P6 per share.

Jan 31 Sold the remaining 6,000 shares of treasury stock for P7 per share.