Record the treasury stock transactions

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Problem - Treasury Stock-Cost Method

Before Gordon Corporation engages in the treasury stock transactions listed below, its general ledger reflects, among others, the following account balances (par value of its stock is $30 per share).

Paid-in Capital in Excess of Par Common Stock Retained Earnings

$99,000 $270,000 $80,000

Instructions -

Record the treasury stock transactions (given below) under the cost method of handling treasury stock; use the FIFO method and the par value method for purchase-sale purposes, also prepare a Statement of Stockholders' Equity for each method

(a) Bought 380 shares of treasury stock at $40 per share.

(b) Bought 300 shares of treasury stock at $45 per share.

(c) Sold 350 shares of treasury stock at $42 per share.

(d) Sold 110 shares of treasury stock at $38 per share.

Reference no: EM131774781

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