Treasury Stock Transactions

SprayCo Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On March 9 of the current year, SprayCo reacquired 15,400 shares of its common stock at $45 per share. On June 9, 9,700 of the reacquired shares were sold at $49 per share, and on November 13, 3,700 of the reacquired shares were sold at $48.

a. Journalize the transactions of March 9, June 9, and November 13. If an amount box does not require an entry, leave it blank.

Mar. 9	Treasury Stock	fill in the blank 303f31f7c042047_2	fill in the blank 303f31f7c042047_3
	Cash	fill in the blank 303f31f7c042047_5	fill in the blank 303f31f7c042047_6
June 9	Cash	fill in the blank 303f31f7c042047_8	fill in the blank 303f31f7c042047_9
	Treasury Stock	fill in the blank 303f31f7c042047_11	fill in the blank 303f31f7c042047_12
	Paid-In Capital from Sale of Treasury Stock	fill in the blank 303f31f7c042047_14	fill in the blank 303f31f7c042047_15
Nov. 13	Cash	fill in the blank 303f31f7c042047_17	fill in the blank 303f31f7c042047_18
	Treasury Stock	fill in the blank 303f31f7c042047_20	fill in the blank 303f31f7c042047_21
	Paid-In Capital from Sale of Treasury Stock	fill in the blank 303f31f7c042047_23	fill in the blank 303f31f7c042047_24

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The repurchase of shares, known as treasury stock, is typically recorded using the cost method. When the treasury stock is resold, what is the company receiving? What is it giving up? Keep in mind the price paid to buy the treasury stock and the price the shares are resold for at a later date.

b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year? $fill in the blank d5dbcd02afe2fdb_1 Credit

c. What is the balance in Treasury Stock on December 31 of the current year? $fill in the blank d5dbcd02afe2fdb_3 Debit

d. How will the balance in Treasury Stock be reported on the balance sheet? As a deduction from stockholders' equity