JC Corporation had 20,000 shares of $4 par value common stock outstanding on Jan

Question

JC Corporation had 20,000 shares of $4 par value common stock outstanding on January 1, 2011. On January 20, 2011, the company purchased 2,000 of the outstanding shares for $16 per share. On July 3, 2011, the company resold 1,000 of the shares at $20 per share.

What is the journal entry to record the resale on July 3?

a. Cash 20,000 Treasury Stock 20,000 b. Cash 20,000 Treasury Stock 16,000 Additional Paid-in capital 4,000 c. Cash 20,000 Retained earnings 4,000 Treasury Stock 16,000 d. Cash 20,000 Treasury Stock 16,000 Retained earnings (gain) 4,000

Explanation / Answer

Journal entry for resale :

so answer is b)

Date accounts & explanation debit credit 2011 july 3 Cash 20000 Treasury stock a/c 16000 Additional paid in capital 4000 (To record resale of treasury stock)

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.