Chapter 8, Problem 8.4ME

Mini-Exercise 8.4

LO 6

Treasury stock transactions On April 10, 2016, Amelia, Inc., purchased 800 shares of its own common stock in the market for $27 per share. On September 28, 2016, the company sold 500 of these shares in the open market at a price of $31 per share.

Required:

Use the horizontal model (or write the entry) to show the effects on Amelia, Inc.’s financial statements of

1. The purchase of the treasury stock on April 10, 2016.
2. The sale of the treasury stock on September 28, 2016.