Avery, Inc. held 100 shares of its own $10 par value common stock purchased for $15 per share. On December 1, Avery sold 10 shares at $15 per share. The journal entry to record the sale of treasury stock would include a (debit/credit) to Treasury Stock in the amount of $.

Question

Randolph

Business

28 October, 22:57

Avery, Inc. held 100 shares of its own $10 par value common stock purchased for $15 per share. On December 1, Avery sold 10 shares at $15 per share. The journal entry to record the sale of treasury stock would include a (debit/credit) to Treasury Stock in the amount of $.

+1

Answers (1)

Know the Answer?

Kenneth Noble · Answer 1

The journal entry to record the sale of treasury stock would include a credit to Treasury Stock in the amount of $150.

Explanation:

Cost of treasury stock: $15 per share. This would be the cost basis of the future sales of the treasury stocks.

Hence, upon sale of the 10 shares of the treasury stock, we credit the account by:

$15 x 10 shares = $150 credit to the account.