Chapter 18, Problem 18.12E

Treasury stock

• LO18–5

In 2018, Western Transport Company entered into the treasury stock transactions described below. In 2016, Western Transport had issued 140 million shares of its $1 par common stock at $17 per share.

Required:

Prepare the appropriate journal entry for each of the following transactions:

1. 1. On January 23, 2018, Western Transport reacquired 10 million shares at $20 per share.
2. 2. On September 3, 2018, Western Transport sold 1 million treasury shares at $21 per share.
3. 3. On November 4, 2018, Western Transport sold 1 million treasury shares at $18 per share.