Question

Elroy corporation repurchased 1,900 shares of its own stock for $55 per share. the stock has a par of $15 per share. a month later, elroy resold 475 shares of the treasury stock for $63 per share.requireda. record the two events in general journal format.b. what is the balance of the treasury stock account after these transactions?

required
record these events in a horizontal statements model.prepare journal entries to record these transactions.

Answer 1

Elroy Corporation repurchased 1,900 shares of its own stock for $55 per share and resold 475 shares of the treasury stock for $63 per share. The balance of the treasury stock account after these transactions is $78,675.

Step-by-step explanation:

a. Recording the events in a general journal format:

Event 1: Elroy Corporation repurchased 1,900 shares of its own stock for $55 per share.

Date: [Date of the transaction]

Account Debit Credit

Treasury Stock 104,500 [1,900 shares x $55]

Cash 104,500

Event 2: Elroy Corporation resold 475 shares of the treasury stock for $63 per share.

Date: [Date of the transaction]

Account Debit Credit

Cash 29,925 [475 shares x $63]

Treasury Stock 26,325 [475 shares x $55]

b. The balance of the treasury stock account after these transactions would be $78,675.