Question

Bargain Central ​Furniture, Inc. completed the following treasury stock transactions in 2016​: LOADING...​(Click the icon to view the​ transactions.) Requirements 1. Journalize these transactions. Explanations are not required. 2. How will Bargain Central ​Furniture, Inc. report treasury stock on its balance sheet as of December ​31, 2016​? Requirement 1. Journalize these transactions. ​(Record debits​ first, then credits. Exclude explanations from any journal​ entries.) Dec. ​1: Purchased 1 comma 500 shares of the​ company's $1 par value common stock as treasury​ stock, paying cash of $ 5 per share. Date Accounts and Explanation Debit Credit Dec. 1

Answer 1

Dr Treasury stock - common 7,500

Cr Cash 7,500

Step-by-step explanation:

Journal entry for Bargain Central ​Furniture

Since the company on Dec. ​1 was said to have make Purchased of the amount of 1 ,500 shares of the​ company's $1 par value common stock as treasury​ stock in which they pay cash of $ 5 per share this means we have to record the transaction by Debiting Treasury stock- common with 7,500 and Crediting Cash with the same amount. The 7,500 is calculated as:

1,500 shares×$5 per share

December 1

Dr Treasury stock - common 7,500

Cr Cash 7,500