On January 27, 2017, the Oscar Laurie Mayer Co. reacquired 1,000 shares of its $

Question

On January 27, 2017, the Oscar Laurie Mayer Co. reacquired 1,000 shares of its $5 par value stock at $20 per share. On March 18, 2017, the Company sold 500 shares of its treasury stock for $26 per share. The journal entry to record the sale on March 18, 2017 would be:
a. Cash $13,000
Treasury Stock $13,000
b. Cash $13,000
Treasury Stock $10,000
PIC $ 3,000
c. Cash $13,000
Treasury Stock $ 2,500
PIC $10,500
d. Cash $13,000
Treasury Stock $3,000
PIC $10,000
e. Common Stock $13,000
Treasury Stock $10,000

Explanation / Answer

B the 3,000 (500*($26-$20)) in excess of the original repurchase price goes to paid in capital.

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