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Dec. 1 Purchased 1,900 shares of the company's $1 par value common stock as treasury stock, paying cash of $5 per share. 15 Sold 200 shares of the treasury stock for cash of $8 per share. 20 Sold 1,000 shares of the treasury stock for cash of $1 per share. (Assume the balance in Paid-In Capital from Treasury Stock Transactions on December 20 is $2,400.)

Dec. 1 Purchased 1,900 shares of the company's $1 par value common stock as treasury stock, paying cash of $5 per share. 15 Sold 200 shares of the treasury stock for cash of $8 per share. 20 Sold 1,000 shares of the treasury stock for cash of $1 per share. (Assume the balance in Paid-In Capital from Treasury Stock Transactions on December 20 is $2,400.)

FINANCIAL ACCOUNTING
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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Accounting for the purchase and sale of treasury stock

Discount Furniture, Inc. completed the following treasury stock transactions in 2018:

Requirements

  1. Journalize these transactions. Explanations are not required.
  2. How will Discount Furniture, Inc. report treasury stock on its balance sheet as of December 31, 2018?
Dec. 1 Purchased 1,900 shares of the company's $1 par value common stock as treasury stock, paying cash of $5 per share. 15 Sold 200 shares of the treasury stock for cash of $8 per share. 20 Sold 1,000 shares of the treasury stock for cash of $1 per share. (Assume the balance in Paid-In Capital from Treasury Stock Transactions on December 20 is $2,400.)
Transcribed Image Text:Dec. 1 Purchased 1,900 shares of the company's $1 par value common stock as treasury stock, paying cash of $5 per share. 15 Sold 200 shares of the treasury stock for cash of $8 per share. 20 Sold 1,000 shares of the treasury stock for cash of $1 per share. (Assume the balance in Paid-In Capital from Treasury Stock Transactions on December 20 is $2,400.)
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