Treasury Stock
Inland Corporation issued 50,000 shares of $3 par value common stock at $19 per share and 9,000 shares of $27 par value, ten percent preferred stock at $77 per share. Later, the company purchased 2,000 shares of its own common stock at $21 per share.
a. Prepare the journal entries to record the share issuances and the purchase of the common shares.
b. Assume that Inland sold 1,500 shares of the treasury stock at $25 per share. Prepare the general journal entry to record the sale of this treasury stock.
c. Assume that Inland sold the remaining 500 shares of treasury stock at $18 per share. Prepare the journal entry to record the sale of this treasury stock.
| General Journal | |||
|---|---|---|---|
| Ref. | Description | Debit | Credit |
| a. | |||
| Common stock | |||
| Issued shares of common stock. | |||
| 10% Preferred stock | |||
| Issued shares of preferred stock. | |||
| Acquired shares of common stock. | |||
| b. | |||
| Treasury stock | |||
| Sold shares of treasury stock. | |||
| c. | |||
| Paid-in-capital from treasury stock | |||
| Sold shares of treasury stock. | |||
