Respuesta :
Answer:
Explanation:
The journal entries are shown below:
On June 1
Treasury Stock A/c Dr $5,000 (50 shares × $100)
To Cash A/c $5,000
(Being treasure stock is purchased)
On July 1
Cash A/c Dr $2,600 (50 shares × $52)
To Treasury Stock A/c $2,500 (50 shares × $50)
To Paid in capital - Treasury stock $100
(Being treasury stock is sold at higher price and the remaining amount would be credited to the paid in capital account)
On August 1
Cash A/c Dr $2,300 (50 shares × $46)
Paid in capital - Treasury stock $100
Retained Earnings A/c Dr $100
To Treasury Stock A/c $2,500 (50 shares × $50)
(Being treasury stock is sold at lower price and the remaining amount would be debited to the retained earning account)
