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 Pay: $99,000
Common Stock: $270,000
Retained Earnings: $80,000
Instructions:
Record the treasury stock transactions (given below) under the cost method of handling treasury stock; use the FIFO method for purchase-sale purposes.
(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 shares.
(d) Sold 110 shares of treasury stock at $38 per shares.