The shareholders' equity section of Jason Company as of December 31, 2017 follows:
$$\begin{array} { | l | r | }
\hline \text { Comman stock } & \$ 180,000 \
\hline \text { Additional paid-in capital (Comman stock) } & 110,000 \
\hline \text { Retained earnings } & 160,000 \
\hline \text { Total sharehalders' equity } & \$ 450,000 \
\hline
\end{array}$$
On January 15, the company repurchased 1,500 shares of its own common stock at $60 to hold as treasury stock. Which of the following would be included in the journal entry recorded on January 15?

Question

The shareholders' equity section of Jason Company as of December 31, 2017 follows:
$$\begin{array} { | l | r | } 
\hline \text { Comman stock } & \$ 180,000 \
\hline \text { Additional paid-in capital (Comman stock) } & 110,000 \
\hline \text { Retained earnings } & 160,000 \
\hline \text { Total sharehalders' equity } & \$ 450,000 \
\hline
\end{array}$$
On January 15, the company repurchased 1,500 shares of its own common stock at $60 to hold as treasury stock. Which of the following would be included in the journal entry recorded on January 15?

Quizplus · Accepted Answer

The repurchase of shares is recorded as a debit to Treasury Stock for the cost of the shares, which is 1,500 shares x $60 = $90,000.

The Shareholders' Equity Section of Jason Company as of December