Prepare the journal entries to record the treasury stock

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Problem - Riverbed Company had the following stockholders equity as of January 1, 2017.

Common stock, $5 par value, 20,200 shares issued $101,000

Paid-in capital in excess of par-common stock 303 000

Retained earnings 319,000  

Total stockholders' equity $723,000

During 2017, the following transactions occurred.

Feb. 1 Riverbed repurchased 2,060 shares of treasury stock at a price of $18 per share.

Mar. 1 720 shares of treasury stock repurchased above were reissued at $16 per share.

Mar. 18 490 shares of treasury stock repurchased above were reissued at $15 per share.

Apr. 22 650 shares of treasury stock repurchased above were reissued at $20 per share.

(a) Prepare the journal entries to record the treasury stock transactions in 2017, assuming Riverbed uses the cost method.

Reference no: EM131633225

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