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    cat55's Avatar
    cat55 Posts: 5, Reputation: 1
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    #1

    Dec 9, 2008, 07:29 PM
    treasury stock
    a company had 1000 shares of $5 par value common stock outstanding. They entered in to the following transactions of their own stock
    1. purchased 100 shares of $25 per share
    2. sold 20 of those shares for $30 per share
    3. sold an additional 20 shares for $18 per share
    I just need to know what to debit and what to credit... we're suppose to post to t accounts... but I know that's hard to show
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Dec 10, 2008, 02:30 PM

    1. The purchase of Treasury stock is recorded at cost
    Debit Treasury Stock for $2,500
    Credit Cash for $2,500

    2. Debit Cash for 600
    Credit Treasury Stock for 500
    Credit Paid-in Capital - Share repurchase for 100

    3. Debit Cash for 360
    Debit Paid-in Capital - Share repurchase for 100
    Debit Reatained Earnings for 40
    Credit Treasury Stock for 500
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