PE 13-5A Entries for treasury stock

On January 31, Wilderness Resorts Inc. reacquired 22,500 shares of its common stock at $31 per share. On April 20, Wilderness Resorts sold 12,800 of the reacquired shares at $40 per share. On October 4, Wilderness Resorts sold the remaining shares at $28 per share.

Journalize the transactions of January 31, April 20, and October 4.


Answer:


Jan. 31 Treasury Stock (22,500 shares × $31) 697,500
Cash 697,500
Apr. 20 Cash (12,800 shares × $40) 512,000
Treasury Stock (12,800 shares × $31) 396,800
Paid-In Capital from Sale of
Treasury Stock [12,800 shares × ($40 – $31)] 115,200
Oct. 4 Cash (9,700 shares × $28) 271,600
Paid-In Capital from Sale of
Treasury Stock [9,700 shares × ($31 – $28)] 29,100
Treasury Stock (9,700 shares × $31) 300,700