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Question - On January 1, 2017, the stockholders' equity section of Newlin Corporation shows common stock ($5 par value) $1,500,000; paid-in capital in excess of par $1,000,000; and retained earnings $1,200,000. During the year, the following treasury stock transactions occurred.
Mar.1Purchased 50,000 shares for cash at $15 per share.July1Sold 10,000 treasury shares for cash at $17 per share.Sept.1Sold 8,000 treasury shares for cash at $14 per share.
Instructions
(a) Journalize the treasury stock transactions.
(b) Restate the entry for September 1, assuming the treasury shares were sold at $12 per share. Journalize treasury stock transactions.
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