A corporation sells 20 repurchased common shares costing $10 per share for $11 per share.The journal entry to record the sale requires a debit to:

Question

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The journal entry to record the sale of repurchased shares includes a debit to cash for the amount received, which is $11 x 20 = $220. There is no need to debit retained earnings or common shares since the shares were repurchased by the corporation and are being resold at a profit.

A Corporation Sells 20 Repurchased Common Shares Costing $10 Per