33 NEED HELP ASAP Salon Company originally issued 3,000 shares of $10 par value

Question

33 NEED HELP ASAP

Salon Company originally issued 3,000 shares of $10 par value common stock for $90,000 ($30 per share). Salon subsequently purchases 300 shares of treasury stock for $27 per share and resells the 300 shares of treasury stock for $29 per share. In the entry to record the sale of the treasury stock, there will be a

debit to Paid-In Capital in Excess of Par of $9,000.

credit to Paid-In Capital from Treasury Stock for $600.

credit to Common Stock for $8,100.

credit to Treasury Stock for $3,000.

debit to Paid-In Capital in Excess of Par of $9,000.

credit to Paid-In Capital from Treasury Stock for $600.

credit to Common Stock for $8,100.

credit to Treasury Stock for $3,000.

Explanation / Answer

Credit to paid in capital from Treasury stock for $600.

The JOurnal Entry would be

CAsh A/c 300x29 =$ 8700

TO Treasury Stock 300x27 =$ 8100

To Paid in capital from Treasury stock $600

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