Before Gordon Corporation engages in the following treasury stock transactions, its general ledger reflects, among others, the following account balances (par value of its stock is $10 per share). Paid-in Capital in Excess of Par—Common Stock Common Stock Retained Earnings $108,000 $220,000 $40,000 Instructions Record the treasury stock transactions (given below) under the cost method of handling treasury stock; use the FIFO method for purchase-sale purposes. a. Bought 375 shares of treasury stock at $45 per share. b. Bought 320 shares of treasury stock at $56 per share. c. Sold 330 shares of treasury stock at $50 per share. d. Sold 120 shares of treasury stock at $37 per share.
Before Gordon Corporation engages in the following treasury stock transactions, its general ledger reflects, among others, the following account balances (par value of its stock is $10 per share). Paid-in Capital in Excess of Par—Common Stock Common Stock Retained Earnings $108,000 $220,000 $40,000 Instructions Record the treasury stock transactions (given below) under the cost method of handling treasury stock; use the FIFO method for purchase-sale purposes. a. Bought 375 shares of treasury stock at $45 per share. b. Bought 320 shares of treasury stock at $56 per share. c. Sold 330 shares of treasury stock at $50 per share. d. Sold 120 shares of treasury stock at $37 per share.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Before Gordon Corporation engages in the following
| Paid-in Capital in Excess of Par—Common Stock | Common Stock | |
|
$108,000
|
$220,000
|
$40,000
|
Instructions
Record the treasury stock transactions (given below) under the cost method of handling treasury stock; use the FIFO method for purchase-sale purposes.
a. Bought 375 shares of treasury stock at $45 per share.
b. Bought 320 shares of treasury stock at $56 per share.
c. Sold 330 shares of treasury stock at $50 per share.
d. Sold 120 shares of treasury stock at $37 per share.
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