109k views
1 vote
SprayCo Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On March 9 of the current year, SprayCo reacquired 12,000 shares of its common stock at $38 per share. On June 9, 7,600 of the reacquired shares were sold at $41 per share, and on November 13, 2,900 of the reacquired shares were sold at $41. 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 June 9 Nov. 13 b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year?

User Bandon
by
8.1k points

1 Answer

6 votes

Answer:

a.

March 9

Dr Treasury Stock - Common stock 456,000

Cr Cash 456,000

( to record the reacquired of 12,000 common stock at $38 each)

June 9

Dr Cash 311,600

Cr Treasury stock 288,800

Cr Paid-in capital 22,800

( to record the sell of 7,600 reacquired common stocks at $41 each)

November 13

Dr Cash 118,900

Cr Treasury stock 110,200

Cr Paid-in capital 8,700

( to record the sell of 2,900 reacquired common stocks at $41 each)

b.

The balance of paid-in capital from sales of treasury stock = 8,700 + 22,800 = 31,500 Credit

Step-by-step explanation:

Calculation notes:

a.

March 9: The cash spent on reacquired common stock = 12,000 x 38 = $456,000

June 9: Cash receipt on sell of treasury common stock = 7,600 x 41 = 311,600; which will Credited $288,800 into Treasury stock account ( 38 x 7,600) and Credited $22,800 ( (41-38) x 7,600) into Paid-in capital account.

Nov 13 : Cash receipt on sell of treasury common stock = 2,900 x 41 = 118,900; which will Credited $110,200 into Treasury stock account ( 38 x 2,900) and Credited $8,700 ( (41-38) x 2,900) into Paid-in capital account.

b. Calculation is shown above

User Enrique Chavez
by
8.3k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories