Treasury StockPomona Corporation issued 60,000 shares of $3 par value common stock at $21 per share and 9,000 shares of $30 par value, ten percent preferred stock at $85 per share. Later, the company purchased 2,000 shares of its own common stock at $23 per share. a. Prepare the journal entries to record the share issuances and the purchase of the common shares.b. Assume that Pomona sold 1,500 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 Pomona sold the remaining 500 shares of treasury stock at $20 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 shares of common stock. Answer Answer Answer 10% Preferred stock Answer Answer Answer Answer Answer Issued shares of preferred stock. Answer Answer Answer Answer Answer Answer Acquired shares of common stock. b. Answer Answer Answer Treasury stock Answer Answer Answer 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.

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
Pomona Corporation issued 60,000 shares of $3 par value common stock at $21 per share and 9,000 shares of $30 par value, ten percent preferred stock at $85 per share. Later, the company purchased 2,000 shares of its own common stock at $23 per share.

a. Prepare the journal entries to record the share issuances and the purchase of the common shares.
b. Assume that Pomona sold 1,500 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 Pomona sold the remaining 500 shares of treasury stock at $20 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 shares of common stock.
	Answer	Answer	Answer
	10% Preferred stock	Answer	Answer
	Answer	Answer	Answer
	Issued shares of preferred stock.
	Answer	Answer	Answer
	Answer	Answer	Answer
	Acquired shares of common stock.
b.	Answer	Answer	Answer
	Treasury stock	Answer	Answer
	Answer	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.