Horton Co. was organized on January 2, 2014, with 500,000 authorized shares of $10 par value common stock. During 2014, Horton had the following capital transactions:January 5-issued 375,000 shares at $14 per share.July 27-purchased 25,000 shares at $11 per share.November 25-sold 18,000 shares of treasury stock at $13 per share.Horton used the cost method to record the purchase of the treasury shares. What would be the balance in the Paid-in Capital from Treasury Stock account at December 31, 2014?

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The Paid-in Capital from Treasury Stock account is credited when treasury stock is purchased and debited when treasury stock is sold. The purchase of 25,000 shares at $11 per share results in a credit to Paid-in Capital from Treasury Stock of $25,000. The sale of 18,000 shares at $13 per share results in a debit to Paid-in Capital from Treasury Stock of $18,000. Therefore, the balance in the account at December 31, 2014, is $36,000 ($25,000 - $18,000 = $7,000).

Horton Co Was Organized on January 2, 2014, with 500,000 Authorized