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Treasury stock that had been purchased for $5,500 last month was reissued this month for $6,500. The journal entry to record the reissuance would include a credit to
a.Treasury Stock for $6,500.
b.Paid-In Capital from Sale of Treasury Stock for $6,500.
c.Paid-In Capital from Sale of Treasury Stock for $1,000.
d.Paid-In Capital in Excess of Par—Common Stock for $1,000.

Respuesta :

Answer:

The correct answer is C

Explanation:

The journal entry for the re- issuance will be as follows:

Cash A/c....................................................Dr    $6,500

     Treasury Stock A/c...........................................................Cr   $5,500

    Paid-In Capital from Sale of Treasury Stock A/c........Cr   $1,000

Working Note:

Paid-In Capital from Sale of Treasury Stock =  Cash - Re-issued amount

Paid-In Capital from Sale of Treasury Stock = $6,500 - $5,500

Paid-In Capital from Sale of Treasury Stock = $1,000

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