On January 1,2014,Elliott Corp.repurchased 1,000 shares of its $1 par value common stock on the market when it was trading for $15 per share.On March 1,2104,Elliott reissued the treasury stock by selling it for $15 per share.How would the company record the March 1 transaction?
A)Debit Treasury Stock,Common for $15,000 and credit Cash for $15,000.
B)Debit Treasury Stock,Common for $10,000 and credit Cash for $10,000.
C)Debit Cash for $15,000 and credit Treasury Stock for $15,000.
D)Debit Cash for $15,000 and credit Treasury Stock,Common for $15,000.
E)Debit Retained Earnings for $15,000 and credit Treasury Stock,Common for $15,000.

Question

Quizplus · Accepted Answer

When treasury stock is reissued, the company records the transaction by debiting Cash for the proceeds received and crediting Treasury Stock for the cost of the shares.