A Company Has 10,000 Shares of $10 Par Common Stock

Essay

A company has 10,000 shares of $10 par common stock outstanding. Prepare entries to record the following:
(a)Purchased 1,000 shares of treasury stock at $12. The treasury stock is accounted for by the cost method. There were no previous purchases of treasury shares.
(b)Sold 500 shares of treasury stock at $15.
(c)Purchased equipment for $75,000, paying $25,000 in cash and issuing 4,000 shares of common stock for the remaining.
(d)Sold 500 shares of treasury stock at $11.