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24 January, 06:07

Sheffield Inc. has outstanding 13,100 shares of $10 par value common stock. On July 1, 2017, Sheffield reacquired 113 shares at $88 per share. On September 1, Sheffield reissued 62 shares at $94 per share. On November 1, Sheffield reissued 51 shares at $86 per share.

Prepare Sheffield's journal entries to record these transactions using the cost method.

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  1. 24 January, 07:51
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    The journal entries for the given economic events are given below:

    Date Account Title Debit Credit

    7/1/17 Treasury Stock (113 X $88) 9,944

    Cash 9,944

    9/1/17 Cash (62 X $94) 5,828

    Treasury Stock (60 X $88) 5,280

    Paid-in Capital from

    Treasury Stock 548

    (Paid in capital from Treasury Stock = 5828 - 5280 = 548)

    11/1/17 Cash (51 X $86) 4,386

    Paid-in Capital from

    Treasury Stock 102

    Treasury Stock (51 X $88) 4,488

    (Paid in capital from Treasury Stock = 4488 - 4386 = 548)
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