The entry to record the reacquisition of common shares at a cost higher than the average issue cost requires a
A) debit to Common Shares.
B) debit to Loss on Repurchase of Common Shares.
C) credit to Common Shares.
D) credit to Retained Earnings.

Question

Quizplus · Accepted Answer

When reacquiring common shares at a cost higher than the average issue cost, the entry involves debiting the Common Shares account to reduce the equity for the shares repurchased.

The Entry to Record the Reacquisition of Common Shares at a Cost