Prior to June 1,a company has never had any treasury stock transactions.The company repurchased 100 shares of its common stock on June 1 for $5,000.On July 1,it reissued 50 of these shares at $52 per share.On August 1,it reissued the remaining treasury shares at $49 per share.What is the balance in the Contributed Capital,Treasury Stock,account on August 2?
A)$5,050
B)$2,600
C)$100
D)$50
E)$0

Question

Quizplus · Accepted Answer

The balance in the Contributed Capital,Treasury Stock account represents the total cost of the treasury stock, which in this case is $5,000. Since all the treasury shares have been reissued, the balance in the account should be zero. Therefore, the correct answer is D) $50, which represents the cost of the 50 shares that were reissued on July 1.

Prior to June 1,a Company Has Never Had Any Treasury