Recording and Reporting Treasury Stock Transactions

On January 1, 2020, M. Jordan Corporation issued 60,000 shares of $1 par value common stock at $50 per share. On January 15, 2020, M. Jordan purchased 150 shares of its own common stock at $55 per share. On March 1, 2020, 60 shares of treasury stock were resold at $58. The balance in retained earnings was $75,000 prior to these transactions.

Required

a. Record the entry on January 1, 2020, for issuance of common stock. What is the impact on stockholders equity of this transaction?

Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order.

Date	Account Name	Dr.	Cr.
Jan. 1, 2020	Cash	$3,000,000	0
	Common Stock	0	$60,000
	Paid-in Capital in Excess of ParCommon Stock	0	$2,940,000

Impact on stockholders' equity

??

increase

b. Record the entry on January 15, 2020, for purchase of common shares for the treasury. What is the impact on stockholders equity of this transaction?

Date	Account Name	Dr.	Cr.
Jan. 15, 2020	Treasury Stock	$8250	0
	Cash	0	$8250

Impact on stockholders' equity

?

decrease

c. Record the entry on March 1, 2020, for sale of treasury shares at $58 per share. What is the impact on stockholders equity of this transaction?

Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order.

Date	Account Name	Dr.	Cr.
March 1, 2020	Cash	$3480	0
	Paid-in Capital in Excess of ParTreasury Stock	0	Answer
	Treasury Stock	0	Answer

Impact on stockholders' equity

?

increase

d. Provide the ending balances for each of the stockholders equity accounts affected by these entries.

Note: Use a negative sign for any contra account(s).

Account	Amount
Common Stock	$60,000
Paid-in capital in excess of parcommon stock	$2,940,000
Paid-in capitaltreasury stock	?????
Retained earnings	$75,000
Treasury stock	?????
Total	?????

e. Assume that on March 30, 2020, all remaining treasury stock shares are retired. Provide the entry for retirement of treasury shares.

Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order.

Date	Account Name	Dr.	Cr.
March 30, 2020	Common Stock	Answer	Answer
	Paid-in Capital in Excess of ParCommon Stock	Answer	Answer
	Paid-in CapitalTreasury Stock	Answer	Answer
	Retained Earnings	Answer	Answer
	Treasury Stock	Answer	Answer