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Treasury stock transactions Lawn Spray Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On January 31 of the current year, Lawn Spray Inc. reacquired 50.000 shares of its common stock at $51 per share. On June 14, 24,000 of the reacquired shares were sold at $60 per share, and on November 23, 18,000 of the reacquired shares were sold at S56. a. Journalize the transactions of January 31, June 14, and November 23. b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year? c. What is the balance in Treasury Stock on December 31 of the current year? d. How will the balance in Treasury Stock be reported on the balance sheet?

BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

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Chapter
Section
Chapter 13, Problem 13.15EX
Textbook Problem

Treasury stock transactions

Lawn Spray Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On January 31 of the current year, Lawn Spray Inc. reacquired 50.000 shares of its common stock at $51 per share. On June 14, 24,000 of the reacquired shares were sold at $60 per share, and on November 23, 18,000 of the reacquired shares were sold at S56.

  1. a. Journalize the transactions of January 31, June 14, and November 23.
  2. b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year?
  3. c. What is the balance in Treasury Stock on December 31 of the current year?
  4. d. How will the balance in Treasury Stock be reported on the balance sheet?

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Chapter 13 Solutions

Accounting
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