Question

During the year, the following selected transactions affecting stockholders' equity occurred for Navajo Corporation: a. Feb. 1 Repurchased 200 shares of the company's own common stock at $23 cash per share. b. Jul. 15 Sold 130 of the shares purchased on February 1 for $24 cash per share. c. Sept. 1 Sold 100 of the shares purchased on February 1 for $22 cash per share. Required: 1. Prepare the journal entry required for each of the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

Feb. 1

Common Stock $4,600 (debit)

Cash $4,600 (credit)

Jul. 15

Cash $3,120 (debit)

Common Stock $3,120 (credit)

Sept. 1

Cash $2,860 (debit)

Common Stock $2,860 (credit)

Step-by-step explanation:

Feb. 1

Common Stock $4,600 (debit)

Cash $4,600 (credit)

200 shares × $23 = $4,600

Jul. 15

Cash $3,120 (debit)

Common Stock $3,120 (credit)

130 shares × $24 = $3,120

Sept. 1

Cash $2,860 (debit)

Common Stock $2,860 (credit)

130 shares × $22 = $2,860