Answer: The answer is given below
Explanation:
A journal is a book that is used in accounting to record the transactions that takes place in a company.
It should be noted that in the attached file, the amount that was paid in capital from the treasury stock was calculated as:
= 5,100 - 3,400
= 1,700
The retained earnings was also calculated as:
= 105,000 - 88,200 - 1,700
= 15,100
Check the attached file for further information.
Answer with its Explanation:
1. The repurchase of 5,500 shares from the sharesholders will be recorded as under:
Dr Treasury Stock $275,000
Cr Cash $275,000
2. The sale of 1,700 shares at $53 per share would be recorded as under:
Dr Cash ( 1,700 shares * $53 ) $90,100
Cr Treasury Stock ( 1,700 shares * $50 ) $85,000
Cr Paid in capital ( 1,700 shares * $3 ) $5,100
3. The Selling of the 1,700 shares at $48 each will be recorded as under:
Dr Cash ( 1,700 Shares * $48) $81,600
Dr Paid in capital ( 1,700 shares * $2) $3,400
Cr Treasury Stock ( 1,700 shares * $ 50 ) $85,000
4. The selling of 2,100 shares at $42 will be recorded as under:
Dr Cash ( 2,100 shares * $ 42 ) $88,200
Dr Paid in capital from treasury stock $1,700 ........ Step 1
Dr Retained Earnings $15,100 ...... Balancing Figure
Cr Treasury Stock ( 2,100 shares * $ 50 ) $105,000
Step 1. Paid in capital from Treasury Stock
Paid in capital from Treasury Stock = 5,100 - 3,400 = $1,700 Paid In capital
Retained Earnings will be Balancing Figure = 105,000 - 88,200 - 1,700 Paid In capital = $15,100
