Farm and Supply reissued 100 shares of treasury stock at $20 that had been reacquired for $15 per share.What is the entry?

Question

Quizplus · Accepted Answer

The reissued shares were sold for $20 per share which gives a total of $2,000. The treasury stock was initially reacquired for $15 per share which gives a total of $1,500. Therefore, the entry should be a debit to Cash for $2,000, a credit to Treasury Stock-Common for $1,500, and a credit to Paid-In Capital from Treasury Stock for $500.

Farm and Supply Reissued 100 Shares of Treasury Stock at $20