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Your answer is partially correct. Skysong, Inc. purchased from its stockholders 5,000 shares of its own previously issued stock for $260,000. It later resold 1,700 shares for $55 per share, then 1,700 more shares for $50 per share, and finally 1,600 shares for $44 per share. Prepare journal entries for the purchase of the treasury stock and the three sales of treasury stock. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Treasury Stock Debit 260,000 Credit Cash (To record purchase from stockholders.) Cash Treasury Stock Paid-in Capital from Treasury Stock (To record sales of shares at $55 per share.) Cash Paid-in Capital from Treasury Stock Treasury Stock (To record sales of shares at $50 per share.) Cash Paid-in Capital from Treasury Stock Retained Earnings Treasury Stock (To record sale of shares at $44 per share.) 93,500 850,000 3,400 70,400 7,700 5.100 MacBook Air 260,000 88,400 5,100 88,400 83.200

Your answer is partially correct. Skysong, Inc. purchased from its stockholders 5,000 shares of its own previously issued stock for $260,000. It later resold 1,700 shares for $55 per share, then 1,700 more shares for $50 per share, and finally 1,600 shares for $44 per share. Prepare journal entries for the purchase of the treasury stock and the three sales of treasury stock. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Treasury Stock Debit 260,000 Credit Cash (To record purchase from stockholders.) Cash Treasury Stock Paid-in Capital from Treasury Stock (To record sales of shares at $55 per share.) Cash Paid-in Capital from Treasury Stock Treasury Stock (To record sales of shares at $50 per share.) Cash Paid-in Capital from Treasury Stock Retained Earnings Treasury Stock (To record sale of shares at $44 per share.) 93,500 850,000 3,400 70,400 7,700 5.100 MacBook Air 260,000 88,400 5,100 88,400 83.200

FINANCIAL ACCOUNTING
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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Your answer is partially correct. Skysong, Inc. purchased from its stockholders 5,000 shares of its own previously issued stock for $260,000. It later resold 1,700 shares for $55 per share, then 1,700 more shares for $50 per share, and finally 1,600 shares for $44 per share. Prepare journal entries for the purchase of the treasury stock and the three sales of treasury stock. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Treasury Stock Debit 260,000 Credit Cash (To record purchase from stockholders.) Cash Treasury Stock Paid-in Capital from Treasury Stock (To record sales of shares at $55 per share.) Cash Paid-in Capital from Treasury Stock Treasury Stock (To record sales of shares at $50 per share.) Cash Paid-in Capital from Treasury Stock Retained Earnings Treasury Stock (To record sale of shares at $44 per share.) 93,500 850,000 3,400 70,400 7,700 5.100 MacBook Air 260,000 88,400 5,100 88,400 83.200
Transcribed Image Text:Your answer is partially correct. Skysong, Inc. purchased from its stockholders 5,000 shares of its own previously issued stock for $260,000. It later resold 1,700 shares for $55 per share, then 1,700 more shares for $50 per share, and finally 1,600 shares for $44 per share. Prepare journal entries for the purchase of the treasury stock and the three sales of treasury stock. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Treasury Stock Debit 260,000 Credit Cash (To record purchase from stockholders.) Cash Treasury Stock Paid-in Capital from Treasury Stock (To record sales of shares at $55 per share.) Cash Paid-in Capital from Treasury Stock Treasury Stock (To record sales of shares at $50 per share.) Cash Paid-in Capital from Treasury Stock Retained Earnings Treasury Stock (To record sale of shares at $44 per share.) 93,500 850,000 3,400 70,400 7,700 5.100 MacBook Air 260,000 88,400 5,100 88,400 83.200
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