Treasury Stock Coastal Corporation issued 25,000 shares of $9 par value common stock at $21 per share and 6,000 shares of $54 par value, eight percent preferred stock at $82 per share. Later, the company purchased 3,000 shares of its own common stock at $24 per share.a. Prepare the journal entries to record the share issuances and the purchase of the common shares.b. Assume that Coastal sold 2,000 shares of the treasury stock at $30 per share. Prepare the general journal entry to record the sale of this treasury stock.c. Assume that Coastal sold the remaining 1,000 shares of treasury stock at $19 per share. Prepare the journal entry to record the sale of this treasury stock. General Journal Ref. Description Debit Credit a. Answer Answer Answer Common Stock Answer Answer Answer Answer Answer Issued common stock. Answer Answer Answer 8 Percent Preferred Stock Answer Answer Answer Answer Answer Issued preferred stock. Answer Answer Answer Answer Answer Answer Acquired common stock. b. Answer Answer Answer Answer Answer Answer Paid-in-Capital from Treasury Stock. Answer Answer Sold shares of treasury stock. c. Answer Answer Answer Paid-in-Capital from Treasury Stock Answer Answer Answer Answer Answer Sold shares of treasury stock. PreviousSave AnswersNext

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

Treasury Stock

Coastal Corporation issued 25,000 shares of $9 par value common stock at $21 per share and 6,000 shares of $54 par value, eight percent preferred stock at $82 per share. Later, the company purchased 3,000 shares of its own common stock at $24 per share.

a. Prepare the journal entries to record the share issuances and the purchase of the common shares.
b. Assume that Coastal sold 2,000 shares of the treasury stock at $30 per share. Prepare the general journal entry to record the sale of this treasury stock.
c. Assume that Coastal sold the remaining 1,000 shares of treasury stock at $19 per share. Prepare the journal entry to record the sale of this treasury stock.

General Journal
Ref.	Description	Debit	Credit
a.	Answer	Answer	Answer
	Common Stock	Answer	Answer
	Answer	Answer	Answer
	Issued common stock.
	Answer	Answer	Answer
	8 Percent Preferred Stock	Answer	Answer
	Answer	Answer	Answer
	Issued preferred stock.
	Answer	Answer	Answer
	Answer	Answer	Answer
	Acquired common stock.
b.	Answer	Answer	Answer
	Answer	Answer	Answer
	Paid-in-Capital from Treasury Stock.	Answer	Answer
	Sold shares of treasury stock.
c.	Answer	Answer	Answer
	Paid-in-Capital from Treasury Stock	Answer	Answer
	Answer	Answer	Answer
	Sold shares of treasury stock.