Crane Company's balance sheet reported the following:Capital stock outstanding, 4,000 shares, par $ 30 per share $ 120,000Paid-in capital in excess of par 75,000Retained earnings 90,000The following transactions occurred this year:(a) Purchased 180 shares of capital stock to be held as treasury stock, paying $ 55 per share.(b) Sold 140 of the shares of treasury stock at $ 60 per share.(c) Sold the remaining shares of treasury stock at $ 45 per share.Prepare the journal entry for these transactions under the cost method of accounting for treasury stock. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)No.Account Titles and ExplanationDebitCredit(a) (b) (c)

Treasury stock: Shares which are bought back by the company from the open market but not retired…

Answered: Crane Company's balance sheet reported…

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter20: Corporations: Organization And Capital Stock

Section: Chapter Questions

Problem 1MP: Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--,...

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Question

Crane Company's balance sheet reported the following:

Capital stock outstanding, 4,000 shares, par $ 30 per share		$ 120,000
Paid-in capital in excess of par		75,000
Retained earnings		90,000

The following transactions occurred this year:

(a)		Purchased 180 shares of capital stock to be held as treasury stock, paying $ 55 per share.
(b)		Sold 140 of the shares of treasury stock at $ 60 per share.
(c)		Sold the remaining shares of treasury stock at $ 45 per share.

Prepare the journal entry for these transactions under the cost method of accounting for treasury stock. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)