Question

Roca Company originally issued 30,000 shares of $5 par common stock for $240,000 on January 3, 2020. Roca purchased 1,500 shares of treasury stock for $15,000 on November 2, 2020. On December 6, 2020, 600 shares of the treasury stock are sold for $7,200. Prepare journal entries to record these stock transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Answer 1

Date Particulars Debit Credit

Jan 3 Cash $240,000

Common stock (30000*5) $150,000

Paid-in-capital in excess $90,000

Nov 2 Treasury stock $15,000

Cash $15,000

Dec 6 Cash $7,200

Treasury stock[75000/1500*600) $6,000

Paid in capital from treasuty cash $1,200