A company purchases 600 shares of its $200 par value common stock at $220 per share.It then reissues 100 shares at $228 per share.The entry upon reissue of the stock would be:
A) Cash 22,800
Treasury Stock-Common 22,000
Paid-in Capital,Treasury Stock 800
B) Cash 22,800
Treasury Stock-Common 22,800
C) Cash 22,800
Treasury Stock-Common 22,000
Gain on Sale of Treasury Stock 800
D) Cash 22,800
Treasury Stock-Common 20,000
Retained Earnings 2,800

Question

Quizplus · Accepted Answer

The company receives $22,800 in cash (100 shares x $228) and reduces Treasury Stock-Common by $22,000 (100 shares x $220). The difference of $800 is credited to Paid-in Capital, Treasury Stock.

A Company Purchases 600 Shares of Its $200 Par Value