Before Gordon Corporation engages in the treasury stock transactions listed below
Question # 00217341
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Updated on: 03/08/2016 11:10 AM Due on: 12/31/2016
P15-5 (Treasury Stock—Cost Method) Before Gordon Corporation engages in the treasury stock transactions listed below, its general ledger reflects, among others, the following account balances (par value of its stock is $30.00 per share).
Paid-in Capital in Excess of Par Common Stock Retained Earnings $99,000 $270,000 $80,000
Instructions
Record the treasury stock transactions (given below) under the cost method of handling treasury stock; use the FIFO method for purchase-sale purposes.
(a) Bought 380 shares of treasury stock at $40 per share
(b) Bought 300 shares of treasury stock at $45 per share.
(c) Sold 350 shares of treasury stock at $42 per share.
(d) Sold 110 shares of treasury stock at $38 per share.
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Rating:
/5
Solution: Before Gordon Corporation engages in the treasury stock transactions listed below