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Journalize the entries to record the purchase

Let's break down the required journal entries for each transaction mentioned in the image.

### Information provided:
- **April 2**: The company bought 6,000 shares of its own stock at **$26 per share**.
- **June 10**: Sold 4,000 shares of the treasury stock at **$29 per share**.
- **November 10**: Sold the remaining 2,000 shares at **$22 per share**.

### a. **Journalizing the purchase of treasury stock on April 2:**
- **Transaction:** The company purchased 6,000 shares at $26 per share.
- **Treasury Stock (debit):** $ 6,000 \times 26 = 156,000 $
- **Cash (credit):** Since this is a purchase, cash decreases by the same amount, $ 156,000 $.

So, the journal entry is:

| Date      | Account            | Debit  | Credit |
|-----------|--------------------|--------|--------|
| April 2   | Treasury Stock      | 156,000|        |
|           | Cash                |        | 156,000|

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### b. **Journalizing the sale of treasury stock on June 10:**
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On April 2, a corporation purchased for cash 6,000 shares of its own $11 par common stock at $26 a share. It sold 4,000 of the treasury shares at $29 a share on June 10. The remaining 2,000 shares were sold on November 10 for $22 a share. Journalize the entries to record the purchase and the sale of the stock.

Learn how to journalize entries for the purchase and sale of treasury stock. The problem covers transactions involving the purchase of 6,000 shares at $26 per share, the sale of 4,000 shares at $29 per share, and the sale of 2,000 shares at $22 per share. Suitable for undergraduate accounting students.

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