Question

Prepare in journal form, the entries necessary to record the following stock transactions for Zeller Company during 2008.

6/1 Purchased 3000 shares of its own $10 par value common stock for $25 per share, the current market price.

6/18 Sold 1400 shares of treasury stock purchased June 1 for $30 per share.

6/28 Sold 1200 shares of treasury stock purchased on june 1 for $20 per share

Answer 1

Journal entries are as prepared below:

Date	Particulars	L.F	Debit	Credit
01-Jun	Treasury Stock		75,000
	Cash (3,000*25)			75,000
	(For 3,000 own shares purchased)
Jun-18	Cash (1,400*30)		42,000
	Treasury Stock (1,400*25)			35,000
	Additional paid in capital (1,400*5)			7,000
	(for 1,400 shares sold)
Jun-28	Cash (1,200*20)		24,000
	Additional paid in capital (1,200*5)		6,000
	Treasury Stock (1,200*25)			30,000
	(for 1,200 shares sold)