Oregon Outfitters issues 1,000 shares of $1 par value common stock at $20 per share. Later in the year, the company decides to purchase 200 shares at a cost of $22 per share. (1) Record the original issue of the 1,000 shares, (2) Record the purchase of 200 shares, and (3) record the entry if Oregon Outfitters resells the 200 shares of treasury stock at $25 per share.
What will be an ideal response?
| Cash (1,000 shares × $20) | 20,000 | ? |
| Common Stock (1,000 shares × $1) | ? | 1,000 |
| Additional Paid-in Capital (difference) | ? | 19,000 |
| (Issue common stock above par) | ? | ? |
| Treasury Stock (200 shares × $22) | 4,400 | ? |
| Cash | ? | 4,400 |
| (Purchase treasury stock) | ? | ? |
| Cash (200 shares × $25) | 5,000 | ? |
| Treasury Stock (200 shares × $22) | ? | 4,400 |
| Additional Paid-in Capital (difference) | ? | 600 |
| (Resell treasury stock above cost) | ? | ? |
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