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.

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)