Journalize the treasury stock transactions for 2020

Assignment Help Accounting Basics

Reference no: EM133041914

Question:

Meta Corporation has the following stockholders' equity accounts on January 1, 2020:

Common Stock, $10 par value .......................... $1,500,000

Paid-in Capital in Excess of Par.......................... 200,000

Retained Earnings............................................... 500,000

Total Stockholders' Equity............................. $2,200,000

The company uses the cost method to account for treasury stock transactions. During 2020, the following treasury stock transactions occurred:

April 1 Purchased 9,000 shares at $16 per share.
August 1 Sold 3,000 shares at $18 per share.
October 1 Sold 3,000 shares at $15 per share.

Instructions

(a) Journalize the treasury stock transactions for 2020.

(b) Prepare the Stockholders' Equity section of the balance sheet for Meta Corporation at December 31, 2020. Assume net income was $110,000 for 2020.

Reference no: EM133041914

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