Prepare the journal entry for these transactions

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Question - Crane Company's balance sheet reported the following:

Capital stock outstanding, 4,000 shares, par $30 per share $120,000

Paid-in capital in excess of par 75,000

Retained earnings 90,000

The following transactions occurred this year:

(a) Purchased 180 shares of capital stock to be held as treasury stock, paying $55 per share.

(b) Sold 140 of the shares of treasury stock at $60 per share.

(c) Sold the remaining shares of treasury stock at $45 per share.

Required - Prepare the journal entry for these transactions under the cost method of accounting for treasury stock.

Reference no: EM133068036

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