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Journal Entries for Treasury Stock Transactions

The document provides journal entries for transactions involving treasury stock for Flower Corporation. It records the acquisition of shares from three parties at different prices per share. It also records the subsequent sale or reissuance of those shares, distributing the differences in price to various equity accounts. A second example shows journal entries to record the donation of shares to LTO Corporation and their subsequent sale.

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Feizhen Mae
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128 views2 pages

Journal Entries for Treasury Stock Transactions

The document provides journal entries for transactions involving treasury stock for Flower Corporation. It records the acquisition of shares from three parties at different prices per share. It also records the subsequent sale or reissuance of those shares, distributing the differences in price to various equity accounts. A second example shows journal entries to record the donation of shares to LTO Corporation and their subsequent sale.

Uploaded by

Feizhen Mae
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

FEIZHEN MAE B.

RODELAS BSACC 1-Y2-1 ACTG124

8.1 Flower Corporation was authorized to issue 100,000 shares with a par value of P 120 per share.
90,000 shares were already issued at par value.

REQUIRED: Journal entries to record the above transactions using the journal entry method.

(a) The corporation acquired 500 shares from Alex at P 118/share.

PARTICULARS DEBIT CREDIT


Treasury Stock 59,000
Cash 59,000

(b) The corporation acquired from Mario 100 shares at P 122/share.

PARTICULARS DEBIT CREDIT


Treasury Stock 12,200
Cash 12,200

(c) The corporation acquired 400 shares from Donna at P 130/share.

PARTICULARS DEBIT CREDIT


Treasury Stock 52,000
Cash 52,000

(d) Sold for cash the shares acquired from Alex at P 118/share.

PARTICULARS DEBIT CREDIT


Cash 59,000
Common Treasury Stock 59,000

(e) Reissued the shares acquired from Mario at P 118/share.

PARTICULARS DEBIT CREDIT


Cash 11,800
Retained Earnings 400
Common Treasury Stock 12,200

(f) Reissued the shares acquired from Donna at P 135/share.

PARTICULARS DEBIT CREDIT


Cash 54,000
Common Treasury Stock 52,000
Paid-In Capital from Sale of Treasury Stock 2,000
8.2 LTO Corporation received 500 shares of its own P 100 par value ordinary shares from a
shareholder as donation. The corporation sold these shares for cash at P 106/share.

REQUIRED: Journal entries to record the above transactions. Use the memo entry method.

1. Receipt of donated shares

Memo Entry: Received 500 shares from a shareholder as donation.

2. Sale of donated shares

Cash 53,000

Share Premium – Donated Shares 53,000

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