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Treasury Stock

Instructions X

Tulip Corporation uses the cost method to account for treasury stock transactions on December 31.

Required:

What journal entry would Tulip make to record the reacquisition of 2,000 shares of its common stock at $12 per share? After the treasury stock
transaction, Tulip made the following journal entry when it reissued the treasury shares:

PAGE 1

GENERAL JOURNAL

DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT

1 Dec. 31 Cash   34,000.00  

2 Treasury Stock 24 000 00

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