Voiles Company reissued 200 shares of its treasury stock.The treasury stock originally cost $25 per share and was reissued for $35 per share.Select the answer that accurately reflects how the reissue of the treasury stock would affect the elements of Voiles' financial statements.

Question

Quizplus · Accepted Answer

Assets (cash)increase by $7,000 (200 × $35),treasury stock decreases by $5,000 (200 × $25)and paid-in capital in excess of cost - treasury stock increases by $2,000.The cash inflow is reported in the financing activities section of the statement of cash flows.

Voiles Company Reissued 200 Shares of Its Treasury Stock