On January 10, a Corporation Purchased 5,000 of Its Own

question 97

Essay

On January 10, a corporation purchased 5,000 of its own ordinary shares at $17.50 per share. On August 4, a total of 1,000 treasury shares were sold at $19.00 per share. These are the only treasury share transactions ever made by the corporation. Prepare the journal entries required on January 10 and August 4.

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Definitions:

Andrew Carnegie

A Scottish-American industrialist and philanthropist who led the expansion of the American steel industry in the late 19th century.

John D. Rockefeller

An American industrialist and philanthropist, best known for his role in the development and expansion of the U.S. oil industry.

Mass Production

The manufacture of large quantities of standardized products, often using assembly lines or automated technology, which significantly reduces the production cost per unit.

Early 1950s

A period marked by post-World War II recovery and growth, the beginning of the Cold War, and significant social and economic changes worldwide.