Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 16,200 shares of its common stock at $29 per share. On June 9, 10,200 of the reacquired shares were sold at $32 per share, and on November 13, 3,900 of the reacquired shares were sold at $33.

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
Cash
June 9 Cash
Treasury Stock
Paid-In Capital from Sale of Treasury Stock
Nov. 13 Cash
Treasury Stock
Paid-In Capital from Sale of Treasury Stock

Feedback

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

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

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Auditing An International Approach

Authors: Bahram Soltani

1st Edition

9780273657736

More Books

Students also viewed these Accounting questions