a corporation has the following owners equity section in their balance sheet
Common stock, $.01 par, 100,000 shares $1,000
Paid in capital in excess of par $1,000,000
Retained earnings $2,000,000
Okay i'm stuck with these four entries relating to treasury stock....
I'm pretty sure i did the first 3 right but i have no clue how to do the
last one. Can anyone help?
Please record these four transactions under the cost method
1. Buy 800 shares of treasury stock for $10/share
2. Re-sells 300 shares of treasury stock for $12/share
3. Re-sells 300 shares of treasury stock for $7/share
4. Retires the remaining treasury stock
Here are my entries
1.
Dr. Treasury Stock 8,000
Cr. Cash 8,000
2.
Dr. Cash 3600
Cr. Paid in capital - Treasury stock 600
Cr. Treasury Stock 3000
3.
Dr. Cash 2100
Dr. Paid in capital - Treasury stock 600
Dr. Retained earnings 300
Cr. Treasury Stock 3000
This last entry about retiring the remaining stock has me very confused. I don't know how to do this. Isn't retained earnings going to be affected in someway since i took 300 out of retained earnings? Can anyone show me? Thanks
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Topic: Help with treasury stock entries
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