The shareholders' equity section of the Jason Company as of December 31, 2017 is as 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 stock at $60 for treasury stock. On January 16, as part of a compensation package, the company reissued half of the treasury shares to executives who exercised stock options for $20 per share. On January 28, the company reissued the remainder of the treasury stock on the open market for $65 per share. Which of the following would be included in the journal entry recorded on January 28?

Question

The shareholders' equity section of the Jason Company as of December 31, 2017 is as 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 stock at $60 for treasury stock. On January 16, as part of a compensation package, the company reissued half of the treasury shares to executives who exercised stock options for $20 per share. On January 28, the company reissued the remainder of the treasury stock on the open market for $65 per share. Which of the following would be included in the journal entry recorded on January 28?

Quizplus · Accepted Answer

The company reissued 750 shares at $65, receiving $48,750. The cost of these shares was $45,000 (750 shares x $60). The difference of $3,750 is credited to Additional Paid-In Capital, Treasury Stock.

The Shareholders' Equity Section of the Jason Company as of December