Antalya Corporation acquired 21200 shares of its own common stock at $22 per share on February 5, 2019, and sold 10600 of these shares at $29 per share on July 9, 2020. The fair value of Antalya's common stock was $26 per share at December 31, 2019, and $27 per share at December 31, 2020. The cost method is used to record treasury stock transactions. What account (s) should Antalya credit in 2020 to record the sale of 10600 shares? a. Treasury Stock for $275600 and Retained Earnings for $31800. b. Treasury Stock for $307400. c. Treasury Stock for $233200 and Paid-in Capital from Treasury Stock for $74200. d. Treasury Stock for $233200 and Retained Earnings for $74200. e. None of the above.

Question

Amber Bass

Business

14 October, 01:32

Antalya Corporation acquired 21200 shares of its own common stock at $22 per share on February 5, 2019, and sold 10600 of these shares at $29 per share on July 9, 2020. The fair value of Antalya's common stock was $26 per share at December 31, 2019, and $27 per share at December 31, 2020. The cost method is used to record treasury stock transactions. What account (s) should Antalya credit in 2020 to record the sale of 10600 shares? a. Treasury Stock for $275600 and Retained Earnings for $31800. b. Treasury Stock for $307400. c. Treasury Stock for $233200 and Paid-in Capital from Treasury Stock for $74200. d. Treasury Stock for $233200 and Retained Earnings for $74200. e. None of the above.

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Answers (1)

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Kiana Blevins · Answer 1

c.

Explanation:

The journal entry will be;

Cash 10,600*29 Dr.$307,400

Treasury Stock 10,600*22 Cr.$233,200

Paid in Capital from treasury stock 10,600 * (29-220 Cr.$74,200

Therefore option c. is correct.