On April 1, 2009, Jetter Corporation reacquired 2,000 shares of its own $10 par share for $120,000 cash. On October 15, 2009, 600 of the treasury shares were reissued at a price of $65 per share.

-Refer to the above data. Assuming there are no further transactions involving treasury share in 2006, the financial statements of Jetter Corporation for 2009 will show:

Question

On April 1, 2009, Jetter Corporation reacquired 2,000 shares of its own $10 par share for $120,000 cash. On October 15, 2009, 600 of the treasury shares were reissued at a price of $65 per share.

-Refer to the above data. Assuming there are no further transactions involving treasury share in 2006, the financial statements of Jetter Corporation for 2009 will show:

Quizplus · Accepted Answer

When treasury shares are reissued at a price higher than their cost, the excess is credited to Share Premium: Treasury Share Transactions. Here, the reissue price was $65 per share, which is $5 more than the cost of $60 per share, resulting in a $3,000 premium for 600 shares.

On April 1, 2009, Jetter Corporation Reacquired 2,000 Shares of Its