Question - Treasury stock
Agler Corporation's balance sheet reported the following:
| |
Capital stock outstanding, 5,000 shares, par $30 per share |
$150,000 |
| |
Paid-in capital in excess of par |
80,000 |
| |
Retained earnings |
100,000 |
The following transactions occurred this year:
| (a) |
Purchased 200 shares of capital stock to be held as treasury stock, paying $60 per share. |
| (b) |
Sold 150 of the shares of treasury stock at $65 per share. |
| (c) |
Sold the remaining shares of treasury stock at $50 per share.
|
Instructions - Prepare the journal entry for these transactions under the cost method of accounting for treasury stock.