On May 3, Zirbal Corporation purchased 8,500 shares of its own stock for $93,500 cash. On November 4, Zirbal reissued 1,750 shaof this treasury stock for $21,000.Prepare the May 3 and November 4 journal entries to record Zirbal's purchase and reissuance of treasury stock.View transaction listJournal entry worksheet<12Record the purchase of 8,500 shares of its own stock for $93,500 cash.Note: Enter debits before credits.DateMay 03Record entryGeneral JournalClear entryDebitCreditView general journal

On May 3, Zirbal Corporation purchased 8,500 shares of its own stock for $93,500 cash. On November 4, Zirbal reissued 1,750 sha of this treasury stock for $21,000. Prepare the May 3 and November 4 journal entries to record Zirbal's purchase and reissuance of treasury stock.

On May 3, Zirbal Corporation purchased 8,500 shares of its own stock for $93,500 cash. On November 4, Zirbal reissued 1,750 sha of this treasury stock for $21,000. Prepare the May 3 and November 4 journal entries to record Zirbal's purchase and reissuance of treasury stock.

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

On May 3, Zirbal Corporation purchased 8,500 shares of its own stock for $93,500 cash. On November 4, Zirbal reissued 1,750 sha
of this treasury stock for $21,000.
Prepare the May 3 and November 4 journal entries to record Zirbal's purchase and reissuance of treasury stock.
View transaction list
Journal entry worksheet
<
1
2
Record the purchase of 8,500 shares of its own stock for $93,500 cash.
Note: Enter debits before credits.
Date
May 03
Record entry
General Journal
Clear entry
Debit
Credit
View general journal

Expert Solution

Step 1

Treasury stock is reacquired share by the company. The required share can be the issued in future. The treasury stock is deducted while calculating the total value of the shareholder fund.

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