Before Gordon Corporation engages in the following treasury stock transactions, 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 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 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 share. d. Sold 110 shares of treasury stock at $38 per share.
Before Gordon Corporation engages in the following treasury stock transactions, 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 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 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 share. d. Sold 110 shares of treasury stock at $38 per share.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter15: Shareholders’ Equity: Capital Contributions And Distributions
Section: Chapter Questions
Problem 15E
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Question
Before Gordon Corporation engages in the following
| Paid-in Capital in Excess of Par—Common Stock | Common Stock | |
|
$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 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 share.
d. Sold 110 shares of treasury stock at $38 per share.
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