On July 1, Pharoah Company purchases 590 shares of its $5 par value common stock for the treasury at a cash price of $9 per share.On September 1, it sells 350 shares of the treasury stock for cash at $13 per share.Journalize the two treasury stock transactions. (Record journal entries in the order presented in the problem. Credit account titles areautomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles andenter O for the amounts.)DateAccount Titles and ExplanationDebitCredit>

Treasury Stock - It is reacquired stock which is brought back by the issuing company, reducing the…

On July 1, Pharoah Company purchases 590 shares of its $5 par value common stock for the treasury at a cash price of $9 per share. On September 1, it sells 350 shares of the treasury stock for cash at $13 per share.

On July 1, Pharoah Company purchases 590 shares of its $5 par value common stock for the treasury at a cash price of $9 per share. On September 1, it sells 350 shares of the treasury stock for cash at $13 per share.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 65E: Treasury Stock Transactions Garrett Inc. had no treasury stock at the beginning of the year. During...

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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

On July 1, Pharoah Company purchases 590 shares of its $5 par value common stock for the treasury at a cash price of $9 per share.
On September 1, it sells 350 shares of the treasury stock for cash at $13 per share.
Journalize the two treasury stock transactions. (Record journal entries in the order presented in the problem. 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 O for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
>

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