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Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:On April 2 a corporation purchased for cash 7,000 shares of its own $11 par common stock at $26 per share. It sold 4,000 of the treasury shares at $29 per share on June 10. The remaining 3,000
shares were sold on November 10 for $22 per share.
a. Journalize the entries for the purchase (treasury stock is recorded at cost). If an amount box does not require an entry, leave it blank.
Apr. 2
b. Journalize the entries for the sale of the stock. If an amount box does not require an entry, leave it blank.
June 10
Nov. 10
DOL
Expert Solution
Step 1
a.
| Date | Account titles and explanation | Debit | Credit |
| Apr. 2 | Treasury stock(7000 * $26) | $182,000 | |
| Cash | $182,000 |
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