The shareholders' equity section of Jason Company as of December 31, 2010 follows:
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 $66 per share. Which of the following would be included in the journal entry recorded on January 16?
a. a debit to Cash for $15,000.
b. a debit to Treasury Stock for $45,000.
c. a credit to Additional Paid-In Capital for $45,000.
d. a credit to Additional Paid-In Capital for $15,000.

Question

The shareholders' equity section of Jason Company as of December 31, 2010 follows:
  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 $66 per share. Which of the following would be included in the journal entry recorded on January 16? 
a. a debit to Cash for $15,000.
b. a debit to Treasury Stock for $45,000.
c. a credit to Additional Paid-In Capital for $45,000.
d. a credit to Additional Paid-In Capital for $15,000.

Quizplus · Accepted Answer

The Answer of The shareholders' equity section of Jason Company as of December 31, 2010 follows:
  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 $66 per share. Which of the following would be included in the journal entry recorded on January 16? 
a. a debit to Cash for $15,000.
b. a debit to Treasury Stock for $45,000.
c. a credit to Additional Paid-In Capital for $45,000.
d. a credit to Additional Paid-In Capital for $15,000.

The Shareholders' Equity Section of Jason Company as of December