Treasury stock
Response to the following problem:
In 2016, Western Transport Company entered into the treasury stock transactions described below. In 2014, Western Transport had issued 140 million shares of its $1 par common stock at $17 per share.
Required:
Prepare the appropriate journal entry for each of the following transactions:
1. On January 23, 2016, Western Transport reacquired 10 million shares at $20 per share.
2. On September 3, 2016, Western Transport sold 1 million treasury shares at $21 per share.
3. On November 4, 2016, Western Transport sold 1 million treasury shares at $18 per share.