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

question 191

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 Contributed Capital,Treasury Stock,on September 1 assuming its beginning-year balance is zero.

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