The Data Below Are from the December 31, 2013, Balance

question 158

Essay

The data below are from the December 31, 2013, balance sheet of the Harrison Corporation:

Common stock, $50 par, 3,000 shares issued and
outstanding ...................................$150,000
Paid-in capital in excess of par ..............45,000
Retained earnings .............................75,000


During 2014, the following transactions affecting corporate capital were recorded:

Aug. 16 Purchased 400 shares of treasury stock at $78 per share.

Oct. 23 Purchased 225 shares of stock at $71 per share and immediately retired the stock.

Nov. 3 Sold 150 shares of the treasury stock purchased on Aug. 16 at $81 per share.


Assuming the cost method is used for treasury stock and that retained earnings are to be reduced minimally in stock reacquisition transactions, provide the entries required to record the above transactions.

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Definitions:

Independent

Not dependent on or influenced by others; autonomous in thought and action.

Completely Dependent

Completely dependent describes a state or condition where something or someone relies entirely on another entity for support, sustenance, or survival.

Transitional Expression

A word or phrase that connects ideas and guides the reader from one thought to another in a piece of writing.

Stringed Instruments

Musical instruments that produce sound through the vibration of strings, such as violins, guitars, and cellos.