Answer:
The Journal entries are as follows:
(i) On March 1,
Treasury stock [30,000 × $10) A.c Dr. $300,000
To cash $300,000
(To record the shares purchased for cash)
(ii) On July 1,
Cash [6,000× $12] A/c Dr. $72,000
To treasury stock [6,000× $10] $60,000
To Excess of paid in capital [6,000× $2] $12,000
(To record selling of treasury shares for cash)
(iii) On September 1,
Cash [5,000× $14] A/c Dr. $70,000
To Excess of paid in capital [5,000× $4] $20,000
To Treasury stock [5,000× $10] $50,000
(To record selling of treasury stock)
