Refer to the information above. The journal entry to record the reissuance of the 600 shares of stock on October 15 includes a:

Question

Quizplus · Accepted Answer

When treasury stock is reissued, the journal entry includes a credit to Additional Paid-In Capital: Treasury Stock Transactions for the excess of the cost of the treasury shares over the par value of the common stock being reissued. In this case, the cost of the 600 shares of treasury stock is $33,000 ($55 per share x 600), while the par value of the common stock being reissued is $6,000 (600 shares x $10 par value per share). The excess of $27,000 is credited to Additional Paid-In Capital: Treasury Stock Transactions.

Refer to the Information Above