On September 5, Bertolli Corporation Acquired 2,500 of Its Own

question 328

Essay

On September 5, Bertolli Corporation acquired 2,500 of its own $1 par ordinary shares for $24 per share. On October 15, 1,000 treasury shares are sold for $25 per share.
Instructions
Journalize the purchase and sale of the treasury shares assuming that the company uses the cost method.

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Definitions:

Machining Department

A specific department within a manufacturing facility where machining processes such as cutting, drilling, or milling are performed on materials.

Activity-based Costing

A costing method that assigns overhead and indirect costs to specific activities, enhancing the accuracy of product costing.

Overhead Pools

Aggregations of indirect costs or overheads that are then allocated to products or services based on predetermined criteria.

Cost of Activities

The expenses associated with specific actions or operations within a company.