Exhibit 15-9 Groundcover, Inc. had never had a treasury stock transaction prior to 2013. It experienced the following treasury stock transactions during 2013:

Assume the cost method is used.
-Refer to Exhibit 15-9. The entry to record the retirement of 100 shares on 5/10/2013 would include a

Question

Exhibit 15-9 Groundcover, Inc. had never had a treasury stock transaction prior to 2013. It experienced the following treasury stock transactions during 2013:

Assume the cost method is used.
-Refer to Exhibit 15-9. The entry to record the retirement of 100 shares on 5/10/2013 would include a

Quizplus · Accepted Answer

The entry to record the retirement of 100 shares on 5/10/2013 would include a credit to Additional Paid-in Capital from Treasury Stock for $200. This is because the treasury stock is being retired, which means that it is being removed from the company's outstanding shares. The company has a loss of $200 on the retirement of the treasury stock, which is debited to Additional Paid-in Capital from Treasury Stock.