Issued 27,000 shares of $1 par value common stock at $10 per share. May 22 Purchased 1,300 shares of treasury stock-common at $13 per share. Sep. 22 Sold 500 shares of treasury stock-common at $23 per share. Sold 800 shares of treasury stock-common at $9 per share. Mar. 4 Oct. 14

Issued 27,000 shares of $1 par value common stock at $10 per share. May 22 Purchased 1,300 shares of treasury stock-common at $13 per share. Sep. 22 Sold 500 shares of treasury stock-common at $23 per share. Sold 800 shares of treasury stock-common at $9 per share. Mar. 4 Oct. 14

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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Question

Journalizing issuance of stock and treasury stock transactions

Stock transactions for Careful Driving School, Inc. follow:

Journalize the transactions.

Issued 27,000 shares of $1 par value common stock at $10 per share.
May 22 Purchased 1,300 shares of treasury stock-common at $13 per share.
Sep. 22 Sold 500 shares of treasury stock-common at $23 per share.
Sold 800 shares of treasury stock-common at $9 per share.
Mar. 4
Oct. 14

Definition Definition Stock repurchased from the stockholders by the company that once issued it. The repurchase of the stock reduces the stockholder's equity balance on the balance sheet. Treasury stocks are an important constituent of stockholder's equity but do not carry any voting rights.

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