Cost method of accounting for treasury stock

Assignment Help Accounting Basics
Reference no: EM13141342

Lomas Corporation's balance sheet reported the following:

Capital stock outstanding, $4,000 shares, par $20 per share $80,000.
Paid-in capital in excess of par $50,000.
Retained earnings $125,000.

The following transactions occurred this year:

a-Purchased 110 shares of shares of capital stock to be held as treasury stock, paying $52 per share.

b-Sold 80 of the shares of treasury stock at $60 per share.

c-Sold the remaining shares of treasury stock at $50 per share.


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

Reference no: EM13141342


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd