Ask Question
24 July, 21:10

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)
  1. 24 July, 21:46
    0
    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
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “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 ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers