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Q3TI

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Horngren'S Financial And Managerial Accounting
Found in: Page 685

Short Answer

On January 3, Halsall Corporation purchased 2,000 shares of the company’s $2 par value common stock as treasury stock, paying cash of $8 per share. On January 30, Halsall sold 1,200 shares of the treasury stock for cash of $10 per share. Journalize these transactions.

Treasury stock debited by $16,000 and Cash credited by $16,000.

Cash debitedby $12,000, Treasury Stock credited by$9,600 andPaid in capital in excess of parcreditedby $2,400 ()

See the step by step solution

Step by Step Solution

Step 1: Basic calculation

Step 2: Journals-

Date

Transaction

Debit

Credit

Jan 3

Treasury stock

$16,000

Cash

$16,000

To record purchase of treasury stock

Jan 30

Cash

$12,000

Treasury Stock

$9,600

Paid in capital in excess of par

$2,400

To record sold treasury stock.

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