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Treasury Stock Transactions
Sun Dance Gardens Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On June 3 of the current year, Sun Dance Gardens Inc. reacquired 9,800 shares of its common stock at $34 per share.
Problem a. What is the balance of Treasury Stock on December 31 of the current year?
Problem b. How will the balance in Treasury Stock be reported on the balance sheet?
Problem c. Assume that Sun Dance Gardens sold 6,200 shares of its treasury stock at $37 on November 2. What accounts would be affected by the sale of the treasury stock?
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