Problem - Treasury Stock-Cost Method
Before Gordon Corporation engages in the treasury stock transactions listed below, its general ledger reflects, among others, the following account balances (par value of its stock is $30 per share).
Paid-in Capital in Excess of Par Common Stock Retained Earnings
$99,000 $270,000 $80,000
Instructions -
Record the treasury stock transactions (given below) under the cost method of handling treasury stock; use the FIFO method and the par value method for purchase-sale purposes, also prepare a Statement of Stockholders' Equity for each method
(a) Bought 380 shares of treasury stock at $40 per share.
(b) Bought 300 shares of treasury stock at $45 per share.
(c) Sold 350 shares of treasury stock at $42 per share.
(d) Sold 110 shares of treasury stock at $38 per share.