Davis Co. issued 200,000 shares of $15 par common stock for $4,500,000. A year later...
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Accounting
Davis Co. issued 200,000 shares of $15 par common stock for $4,500,000. A year later Davis acquired 20,000 shares of its own common stock at $40 per share. Three months later Davis sold 9,000 of these shares at $50 per share. Davis Co. uses the cost method to record treasury stock transactions. Prepare a journal entry when Davis Co. (1) issued the stock, (2) Acquired the stock, (3) sold the 9,000 shares of the same stock acquired
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