Essay
The data below are from the December 31, 2013, balance sheet of the Harrison Corporation:
Common stock, $50 par, 3,000 shares issued and
outstanding ...................................$150,000
Paid-in capital in excess of par ..............45,000
Retained earnings .............................75,000
During 2014, the following transactions affecting corporate capital were recorded:
Aug. 16 Purchased 400 shares of treasury stock at $78 per share.
Oct. 23 Purchased 225 shares of stock at $71 per share and immediately retired the stock.
Nov. 3 Sold 150 shares of the treasury stock purchased on Aug. 16 at $81 per share.
Assuming the cost method is used for treasury stock and that retained earnings are to be reduced minimally in stock reacquisition transactions, provide the entries required to record the above transactions.
Correct Answer:
Verified
Correct Answer:
Verified
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