The following information is provided from the Forza Corporation's accounting records.
1) Issued 2,500 shares of $1 par common stock at $23 a share.
2) Issued 7,500 shares of $1 par common stock in exchange for land valued at $65,000.
3) In order to prevent a hostile takeover the company reacquired the 7,500 shares for $20 per share.
4) The hostile takeover did not succeed, the company reissued 5,500 shares at a cost of $21 per share.
5) The remaining stocks were reissued for $22 per share and an additional 2,000 shares were issued at the same price.
Required:
Prepare the journal entries for the stock entries, using the cost method assumption to account for the treasury stock.

Question

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The Answer of The following information is provided from the Forza Corporation's accounting records.
1) Issued 2,500 shares of $1 par common stock at $23 a share.
2) Issued 7,500 shares of $1 par common stock in exchange for land valued at $65,000.
3) In order to prevent a hostile takeover the company reacquired the 7,500 shares for $20 per share.
4) The hostile takeover did not succeed, the company reissued 5,500 shares at a cost of $21 per share.
5) The remaining stocks were reissued for $22 per share and an additional 2,000 shares were issued at the same price.
Required:
Prepare the journal entries for the stock entries, using the cost method assumption to account for the treasury stock.

The Following Information Is Provided from the Forza Corporation's Accounting