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Prior to February 28, a company has never had any treasury stock transactions. A company repurchased 100 shares of its common stock on April 30 for $40 per share. On June 20, it reissued 50 of these shares at $46 per share. On September 1, it reissued 20 of the shares at $38 per share. What is the balance in the Treasury Stock account on November 2

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Answer: $2,760

Explanation:

The Treasury account is for a company's own shares that it buys back.

Company purchased 100 shares for $40:

= 100 * 40

= $4,000

June 20, they sold 50 of these shares. It will be deducted from the Treasury account at cost. Balance is:

= 4,000 - (50 * 40)

= $2,000

On September 1, 20 shares at $38 were reissued. Balance in Treasury Account goes to:

= 2,000 + (20 * 38)

= $2,760