Slater Roofing Company originally issued 6000 shares of $10 par value common stock for $180000 ($30 per share). Slater subsequently purchases 600 shares of treasury stock for $27 per share and resells the 600 shares of treasury stock for $29 per share. In the entry to record the sale of the treasury stock there will be a

Question

Quizplus · Accepted Answer

When treasury stock is sold, the difference between the sales price and the cost of the treasury stock is credited to Paid-In Capital from Treasury Stock. In this case, the cost of the 600 shares of treasury stock is $16200 (600 shares x $27 per share), and the sales price is $17400 (600 shares x $29 per share). The difference is $1200, which is credited to Paid-In Capital from Treasury Stock. Therefore, the correct answer is D.

Slater Roofing Company Originally Issued 6000 Shares of $10 Par