Problem D-I — Treasury Stock

Short Answer

Problem D-I — Treasury Stock
The stockholders' equity section of Carey Co.'s balance sheet at December 31, 2014, was as follows:

Instructions
Prepare journal entries (1, 2, and 4) and show proper disclosure (3) to reflect the following treasury stock transactions showing how each is accounted for under the cost method. (Show computations.)

-On January 4, 2015, having idle cash, Carey Co. repurchased 25,000 shares of its out-standing stock for $500,000.