Question - Treasury Stock - Cost Method
Situation: Before Gordon Corporation engages in the treasury stock transactions listed below, its general ledger reflects, among others, the following account balances (par value) of its stock is $30 per share).
Paid-in Capital in Excess of Par Common Stock Retained Earnings
$99,000 $270,000 $80,000
Instructions: Record the treasury stock transactions (given below) under the cost method of handling treasury stock; use the FIFO method for purchase-sale purposes.
a) Bought 380 shares of treasury stock at $40 per share.
b) Bought 300 shares of treasury stock at $45 per share.
c) Sold 350 shares of treasury stock at $42 per share.
d) Sold 110 shares of treasury stock at $38 per share.