Question
Your answer is partially correct. Try again. Fouts Corporation purchased 4,200 shares of its $11 par value common stock for $277,200 on August 1. It
Your answer is partially correct. Try again. |
Fouts Corporation purchased 4,200 shares of its $11 par value common stock for $277,200 on August 1. It will hold these shares in the treasury until resold. On December 1, the corporation sold 2,520 shares of treasury stock for cash at $73 per share. Journalize the treasury stock transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date | Account Titles and Explanation | Debit | Credit |
Aug. 1 | Treasury Stock | 277,200 | |
Cash | 277,200 | ||
Dec. 1 | Cash | 183,960 | |
Treasury Stock | 27,720 WRONG | ||
Paid-in Capital from Treasury Stock | 156,240 WRONG |
I cannot figure out the credit amounts for December 1st Treasury Stock and Paid-in Capital from Treasury Stock. I tried multiplying the shares from December 1st with the price on August 1st because that's what I saw other questions like this doing, but I still could not get the correct answer.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started