Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Teal Company had the following stockholders equity as of January 1, 2020. Common stock, $1 par value, 117,000 shares issued $117,000 Paid-in capital in excess

Teal Company had the following stockholders equity as of January 1, 2020.

Common stock, $1 par value, 117,000 shares issued $117,000
Paid-in capital in excess of parcommon stock 893,000
Retained earnings 398,000
Total stockholders equity $1,408,000

During 2020, the following transactions occurred.

Feb. 16 Teal repurchased 5,500 shares of treasury stock at a price of $16 per share.
Mar. 8 200 shares of treasury stock repurchased above were reissued at $17 per share.
Apr. 11 700 shares of treasury stock repurchased above were reissued at $13 per share.
May 8 1,900 shares of treasury stock repurchased above were reissued at $19 per share.

Prepare the journal entries to record the treasury stock transactions in 2020, assuming Teal uses the cost method. (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 0 for the amounts.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

A 300N F 30% d 2 m Answered: 1 week ago

Answered: 1 week ago