15.15.Treasury stock that had been purchased for $5,600 last month was reissued
ID: 2538004 • Letter: 1
Question
15.15.Treasury stock that had been purchased for $5,600 last month was reissued this month for $8,500. The journal entry to record the reissuance would include a credit to
a.Treasury Stock for $8,500
b.Paid-In Capital from Sale of Treasury Stock for $8,500
c.Paid-In Capital from Sale of Treasury Stock for $2,900
d.Paid-In Capital in Excess of Par—Common Stock for $2,900
When Wisconsin Corporation was formed on January 1, the corporate charter provided for 100,000 shares of $10 par value common stock. During its first month of operation, the corporation issued 8,500 shares of stock at a price of $16 per share.
16.The entry to record the above transaction would include a
a.credit to Common Stock for $136,000
b.credit to Paid-In Capital in Excess of Par—Common Stock for $51,000
c.debit to Common Stock for $85,000
d.debit to Cash for $85,000
Explanation / Answer
15) Journal entry :
so answer is c) Paid-In Capital from Sale of Treasury Stock for $2,900
16) Journal entry :
so answer is b) credit to Paid-In Capital in Excess of Par—Common Stock for $51,000
Date accounts & explanation debit Credit Cash 8500 Treasury stock 5600 Paid in capital from sale of treasury stock 2900Related Questions
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