Supermart, Inc completed the following treasury stock transactions in 2016
Mar. 3 Purchased 1,800 shares of the company's $ 3 par value common stock as treasury stock, paying cash of $ 10 per share.
Mar. 17 Sold 400 shares of the treasury stock for cash of $ 12 per share.
Mar. 25 Sold 600 shares of the treasury stock for cash of $ 7 per share.
(Assume the balance in Paid-In Capital from Treasury Stock Transactions on March 24 is $ 1,200.)
Journalize these transactions. Explanations are not required.
How will Supermart, Inc report treasury stock on its balance sheet as of December 31, 2016?
What will be an ideal response
Date Accounts and Explanation Debit Credit
2016
Mar. 3 Treasury Stock—Common
($10 per share x 1,800 shares) 18,000
Cash 18,000
Mar. 17 Cash ($12 per share x 400 shares) 4,800
Treasury Stock—Common
($10 per share x 400 shares) 4,000
Paid-In Capital from Treasury Stock
Transactions ($2 x 400 shares) 800
Mar. 25 Cash ($7 per share x 600 shares) 4,200
Paid-In Capital from Treasury Stock Transaction 1,200
Retained Earnings 600
Treasury Stock—Common
($10 per share x 600 shares) 6,000
Supermart, Inc. will report treasury stock beneath retained earnings on the balance sheet as a reduction to total stockholders' equity.
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