40 of the 200 treasury shares that April Corporation acquired at $6 par per common stock that were originally issued at $24 par per share, were reissued for $8 per share. What is the journal entry for the reissued shares?

Question

Quizplus · Accepted Answer

The correct journal entry for reissuing treasury shares at a price above their cost involves debiting Cash for the proceeds received ($8 per share * 40 shares = $320), debiting Paid-In Capital from Treasury Stock for the difference between the reissue price and the cost ($16 difference per share * 40 shares = $640), and crediting Treasury Stock-Common for the cost of the shares being reissued ($24 per share * 40 shares = $960). This reflects the increase in cash, the removal of treasury stock at cost, and the recording of the excess of the reissue price over cost in paid-in capital.

40 of the 200 Treasury Shares That April Corporation Acquired