AC 302 Chapter 15 Problem 5

AC 302 Chapter 15 Problem 5
Name				Date		
Instructor				Course		
Intermediate Accounting 14th Edition by Kieso Weygandt and Warfield						
Primer on Using Excel in Accounting by Rex A Schildhouse						
						
P15-5 (Treasury Stock—Cost Method) 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		$30.00 	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.	
						
	Account Title			Amount		
	Account Title				Amount	
						
(b) Bought	300 	shares of treasury stock at		$45 	per share.	
						
	Account Title			Amount		
	Account Title				Amount	
						
(c) Sold	350 	shares of treasury stock at		$42 	per share.	
						
	Account Title			Amount		
	Account Title				Amount	
	Account Title				Amount	
						
(d) Sold	110 	shares of treasury stock at		$38 	per share.	
						
	Account Title			Amount		
	Account Title			Amount		
	Account Title				Amount	
						
	First shares purchased				Amount	
	Second shares purchased				Amount	
	Cost of treasury shares sold using FIFO =				Formula