Bramble Corp.'s balance sheet reported the following:Capital stock outstanding, 5,000 shares, par $25 per share $125,000Paid-in capital in excess of par 77,100Retained earnings 107,800The following transactions occurred this year:(a) Purchased 220 shares of capital stock to be held as treasury stock, paying $60 per share.(b) Sold 150 of the shares of treasury stock at $65 per share.(c) Sold the remaining shares of treasury stock at $52 per share.Prepare the journal entry for these transactions under the cost method of accounting for treasury stock.

The treasury stock is the purchase of its own share by the company.

Answered: Bramble Corp.'s balance sheet reported…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Bramble Corp.'s balance sheet reported the following:

Capital stock outstanding, 5,000 shares, par $25 per share		$125,000
Paid-in capital in excess of par		77,100
Retained earnings		107,800

The following transactions occurred this year:

(a)		Purchased 220 shares of capital stock to be held as treasury stock, paying $60 per share.
(b)		Sold 150 of the shares of treasury stock at $65 per share.
(c)		Sold the remaining shares of treasury stock at $52 per share.

Prepare the journal entry for these transactions under the cost method of accounting for treasury stock.

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