On February 1, United Delivery Services reports Common Stock of $1 million, Paid-in Capital in Excess of Par—Common of $9 million and Retained Earnings of $10 million
On February 2, United Delivery Services reacquired 10,000 shares of its $10 par value common stock at $50 per share. On February 23, United Delivery Services sold 1,000 of the reacquired shares at $65 per share. On February 27, the remaining 9,000 shares were sold at $40 per share.
Required:
Prepare the journal entries necessary to record these transactions. Omit explanations.
Date Account Debit Credit
Feb. 2 Treasury Stock 500,000
Cash 500,000
(10,000 shares × $50 )
Feb. 23 Cash (1,000 × $65 ) 65,000
Treasury Stock (1,000 × $50 ) 50,000
Paid-in Capital from Treasury Stock Transactions 15,000
Feb. 27 Cash (9,000 × $40 ) 360,000
Paid-in Capital from Treasury Stock Transactions 15,000
Retained Earnings 75,000
Treasury Stock (9,000 × $50 ) 450,000
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