ABC Company is authorized to issue 100,000 shares of its $10 par value common stock and...

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Accounting

ABC Company is authorized to issue 100,000 shares of its $10 parvalue common stock and as of February 1 had 25,000 shares issuedand outstanding. On March 1, ABC bought 1,000 of its shares for thetreasury at $25 each. Required—Prepare the journal entries that ABCshould have made to record the transactions described in each ofthe following independent scenarios: Scenario #1 (1) On March 11,ABC issued 100 of the treasury shares at $30 each. (2) On March 21,ABC issued 100 of the treasury shares at $22 each. Scenario #2 (1)On March 11, ABC issued 100 of the treasury shares at $26 each. (2)On March 21, ABC issued 100 of the treasury shares at $22 each.

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Entry on 1 Mar under both scenarios are optional and can be ignored Scenario 1 Date Accounts title Debit Credit Working 01Mar Treasury Stock 25000 1000 shares x 25 cost Cash 25000 1000 shares x 25 cost See Answer

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