1. 24,800 shares reacquired by Elixir Corporation for $48 per share were exchanged for undeveloped land that has an appraised value of $1,740,700. At the time of the exchange, the common stock was trading at $63 per share on an organized exchange. (a) Prepare the journal entry to record the acquisition of land assuming that the purchase of the stock was originally recorded using the cost method
2. Sprinkle Inc. has outstanding 13,010 shares of $10 par value common stock. On July 1, 2014, Sprinkle reacquired 110 shares at $89 per share. On September 1, Sprinkle reissued 64 shares at $91 per share. On November 1, Sprinkle reissued 46 shares at $85 per share. Prepare Sprinkle’s journal entries to record these transactions using the cost method.
3. Arantxa Corporation has outstanding 20,430 shares of $5 par value common stock. On August 1, 2014, Arantxa reacquired 270 shares at $84 per share. On November 1, Arantxa reissued the 270 shares at $78 per share. Arantxa had no previous treasury stock transactions. Prepare Arantxa’s journal entries to record these transactions using the cost method.