Treasury stock that had been purchased for $5,500 last month was reissued this month for $6,500. The journal entry to record the reissuance would include a credit to

a. Treasury Stock for $6,500.

b. Paid-In Capital from Sale of Treasury Stock for $6,500.

c. Paid-In Capital from Sale of Treasury Stock for $1,000.

d. Paid-In Capital in Excess of Par-Common Stock for $1,000.

Question

Marin Crosby

Business

19 January, 07:30

Treasury stock that had been purchased for $5,500 last month was reissued this month for $6,500. The journal entry to record the reissuance would include a credit to

a. Treasury Stock for $6,500.

b. Paid-In Capital from Sale of Treasury Stock for $6,500.

c. Paid-In Capital from Sale of Treasury Stock for $1,000.

d. Paid-In Capital in Excess of Par-Common Stock for $1,000.

+3

Answers (1)

Know the Answer?

Gianni Valdez · Answer 1

The correct answer is C

Explanation:

The journal entry for the re - issuance will be as follows:

Cash A/c ... Dr $6,500

Treasury Stock A/c ... Cr $5,500

Paid-In Capital from Sale of Treasury Stock A/c ... Cr $1,000

Working Note:

Paid-In Capital from Sale of Treasury Stock = Cash - Re-issued amount

Paid-In Capital from Sale of Treasury Stock = $6,500 - $5,500

Paid-In Capital from Sale of Treasury Stock = $1,000