QS 11-11 Purchase and sale of treasury stock LO P3

On May 3, Zirbal Corporation purchased 4,000 shares of its own stock for $36,000 cash. On November 4, Zirbal reissued 850 shares of this treasury stock for $8,500. Prepare the May 3 and November 4 journal entries to record Zirbals purchase and reissuance of treasury stock.

• 1

  Record the purchase of 4,000 shares of its own stock for $36,000 cash.

• 2

  Record the reissue of 850 shares of this treasury stock for $8,500.