Textbook Problem

Accounting for Treasury Stock

Paris Corporation provides travel planning services for large corporations across the world. On January 23, 2019, Paris Corporation repurchases 275,000 shares of its outstanding common stock for $12 per share. On May 19, 2019, Paris sells 100,500 shares of treasury stock for $8 per share. On November 1, 2019, Paris sells 60,000 shares of its treasury stock for $27 per share.

Required:

1. Prepare the necessary journal entries to record these transactions.
2. CONCEPTUAL CONNECTION How will these transactions affect Paris’s 2019 income statement?

Use the following information for Brief Exercises 10-45 and 10-46:

Heitman Company purchases 170,000 shares of treasury stock for $11 per share.