Five thousand shares of treasury stock of Marker, Inc., previously acquired at $14 per share, are sold at $20 per share. The entry to record this transaction will include a Group of answer choices credit to Treasury Stock for $100,000. debit to Paid-In Capital from Treasury Stock for $30,000. debit to Treasury Stock for $70,000. credit to Paid-In Capital from Treasury Stock for $30,000.

Question

Larissa

Business

5 September, 20:34

Five thousand shares of treasury stock of Marker, Inc., previously acquired at $14 per share, are sold at $20 per share. The entry to record this transaction will include a Group of answer choices credit to Treasury Stock for $100,000. debit to Paid-In Capital from Treasury Stock for $30,000. debit to Treasury Stock for $70,000. credit to Paid-In Capital from Treasury Stock for $30,000.

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Jimmy Schwartz · Answer 1

credit to Paid-In Capital from Treasury Stock for $30,000.

Explanation:

The Journal entry is shown below:-

Cash Dr, $100,000

(5,000 * $20)

To Treasury stock $70,000

(5000 * $14)

To Additional paid in capital $30,000

(5000 * $6)

Therefore we debited the cash as liability is increasing and we credited the treasury stock and additional paid in capital as it also increasing the liability.