A company purchases 400 shares of its $50 par value common stock at $55 per share.It then reissues 60 shares at $58 per share.The entry upon reissue of the stock would be:

Question

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The company receives cash of $3,480 (60 shares x $58). The cost of the treasury stock reissued is $3,300 (60 shares x $55). The difference of $180 is credited to Paid-in Capital, Treasury Stock.

A Company Purchases 400 Shares of Its $50 Par Value