Question

SprayCo Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On March 9 of the current year, SprayCo reacquired 16,900 shares of its common stock at $23 per share. On June 9, 10,600 of the reacquired shares were sold at $25 per share, and on November 13, 4,100 of the reacquired shares were sold at $25.

Required:
Journalize the transactions of March 9, June 9, and November 13.

Answer 1

Date Account Title Debit Credit

Mar 9 Treasury Stock $388,700

Cash $388,700

Working:

Treasury stock = 16,900 * 23 = $388,700

Date Account Title Debit Credit

June 9 Cash $265,000

Treasury Stock $243,800

Additional Paid-in capital - $21,200

Treasury stock.

Working:

Cash = 10,600 * 25 = $265,000

Treasury stock = 10,600 * 23 = $243,800

Date Account Title Debit Credit

Nov 13 Cash $102,500

Treasury Stock $ 94,300

Additional Paid-in capital - $ 8,200

Treasury stock.

Working:

Cash = 4,100 * 25 = $102,500

Treasury stock = 4,100 * 23 = $94,300