A Company's Only Treasury Stock Transactions for the Current Year

question 60

Essay

A company's only treasury stock transactions for the current year are as follows: (1) 1,000 shares of its common stock were purchased on June 1 for $40,000; (2) On July 1 it reissued 500 of these shares at $45 per share; (3) On August 1 it reissued the 500 remaining treasury shares at $38 per share.
(1) Prepare the journal entries required to record these transactions.
(2) Calculate the balance in Paid-in Capital,Treasury Stock,on September 1 assuming its beginning-year balance is zero.

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Definitions:

Parietal Lobes

The parietal lobes are regions of the cerebral cortex located at the upper back area of the skull, crucial for processing sensory information regarding the location of parts of the body as well as interpreting visual information and processing language and mathematics.

Perception Of Pain

The subjective interpretation and experience of discomfort or suffering that can have physical and emotional components.

Gustatory System

The sensory system responsible for the perception of taste and flavor.

Gestalt Principles

Theories of visual perception developed by German psychologists, which describe how people tend to organize visual elements into groups or unified wholes.