Moony Corporation had 20,000 shares of $4 par-value common stock outstanding on January 1, 2012. On January 10, 2012, the firm purchased 2,000 of its outstanding shares for $18 per share. On July 22, 2012, it reissued 1,000 shares at $22 per share. Given this information, the entry to record the purchase of this stock on January 10 would include a debit to

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The purchase of treasury stock is recorded by debiting the Treasury Stock account for the cost of the shares purchased, which is 2,000 shares at $18 per share, totaling $36,000.

Moony Corporation Had 20,000 Shares of $4 Par-Value Common Stock