On February 22, Brett Corporation reacquired 270 shares of its $5 par value comm

Question

On February 22, Brett Corporation reacquired 270 shares of its $5 par value common stock for $25 each. On March 15, the company reissued 63 shares for $30 each. What is true of the journal entry for reissuing their shares?

Credit Treasury Stock $1,890

Credit Cash $1,575

Debit Treasury Stock $1,575

Credit Additional Paid in Capital $315

On February 22, Brett Corporation reacquired 270 shares of its $5 par value common stock for $25 each. On March 15, the company reissued 63 shares for $30 each. What is true of the journal entry for reissuing their shares?

Explanation / Answer

Journal entry for reissuing their shares, true statment will be,

Credit Additional Paid in Capital $315

When it reacquired:

Treasury Stock $1350

Additional Paid in Capital $5400

To Cash $6750

When reisssued :

Cash a/c $1890

   To Treasury Stock $1575

   To Additional Paid in Capital $ 315

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