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Treasury Stock Transactions SprayCo Inc

Finance Dec 14, 2020

Treasury Stock Transactions

SprayCo Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On March 9 of the current year, SprayCo reacquired 11,400 shares of its common stock at $26 per share. On June 9, 7,200 of the reacquired shares were sold at $28 per share, and on November 13, 2,700 of the reacquired shares were sold at $29.

a. Journalize the transactions of March 9, June 9, and November 13. If an amount box does not require an entry, leave it blank.

Mar. 9

fill in the blank b679d4069fdf056_2

fill in the blank b679d4069fdf056_3

fill in the blank b679d4069fdf056_5

fill in the blank b679d4069fdf056_6

June 9

fill in the blank b679d4069fdf056_8

fill in the blank b679d4069fdf056_9

fill in the blank b679d4069fdf056_11

fill in the blank b679d4069fdf056_12

fill in the blank b679d4069fdf056_14

fill in the blank b679d4069fdf056_15

Nov. 13

fill in the blank b679d4069fdf056_17

fill in the blank b679d4069fdf056_18

fill in the blank b679d4069fdf056_20

fill in the blank b679d4069fdf056_21

fill in the blank b679d4069fdf056_23

fill in the blank b679d4069fdf056_24

b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year?

$fill in the blank 71af6cf83008009_1

c. What is the balance in Treasury Stock on December 31 of the current year?

$fill in the blank 71af6cf83008009_3

d. How will the balance in Treasury Stock be reported on the balance sheet?

Expert Solution

a) PFA

b) Paid in capital from sale of treasury stock ($14,400+$8,100) = $22,500

c) Treasury stock balance ($296,400-$187,200-$70,200) = $39,000

d) Balance of treasury stock will be reported in balance as deduction from stockholders' equity.

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