Answer:
Treasury stock is a contra equity account that decreases stockholders' equity. It is generally reported at the end of the stockholders' equity section on the balance sheet with a negative amount (treasury stock has a debit balance and it is reported in the credit side). In this case, the balance of treasury stock = ($3,600)
Explanation:
Some information was missing and I decided to look it up. Hopefully it will be the same exact question, but if not, you can use it as an example and just adjust the numbers.
Bargain Central Furniture, Inc., completed the following treasury stock transactions:
a. purchased 1,300 shares of the company's $1 par common stock as treasury stock, paying cash or $6 per share.
b. sold 700 shares of the treasury stock for cash of $9 per share.
The journal entries should be:
Dr Treasury stock 7,800
Cr Cash 7,800
Dr Cash 6,300
Cr Treasury stock 4,200
Cr Additional paid in capital 2,100
Treasury stock balance $3,600
