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Question
A company has 10,000 shares of $10 par common stock outstanding. Journalize the following transactions:
a. Purchased 1,500 shares of treasury stock at $16. The treasury stock is accounted for by the cost method. There were no previous purchases of treasury shares.
b. Sold 1,000 shares of treasury stock at $19.
c. Purchased equipment for $80,000, paying $25,000 in cash and issuing 4,000 shares of common stock.
d. Sold 500 shares of treasury stock at $14.
Answer
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