Telecom Inc. has outstanding 100,000 shares of $10 per value common stock. On August 1, 2014, the corporation reacquired 1,000shares at $87 per share. On November 1, the corporation reissued 600 shares at $90 per share. On December 1, the corporation reissued 400 shares at $83 per share. Using the cost method, prepare Telecom’s journal entries to record these transactions

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Telecom Inc. has outstanding 100,000 shares of $10 per value common stock. On August 1, 2014, the corporation reacquired 1,000shares at $87 per share. On November 1, the corporation reissued 600 shares at $90 per share. On December 1, the corporation reissued 400 shares at $83 per share. Using the cost method, prepare Telecom’s journal entries to record these transactions

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Darshita6.14K 0 Comments
Date Description Debit $ Credit $
Aug -1-2014 Tresury Stock A/c 87000
To Cash 87000
( 1000 share x 87 Per share)
Nov -1- 2014 Cash 54000
(600*90)
Paid In Capital 52200
Tresury Stock A/c
(600 *(90-87))		 1800
Dec -1-2014 Cash 33200
(400*83)
Retaines Earning 1600
(400*87-83)
Paid In Capital 34800

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