On April 16,2015,Rodriguez Corporation reacquired 12,000 shares of its own $10 par stock for $660,000 cash.On November 4,2016,1,000 of the treasury shares were reissued at a price of $65 per share.The journal entry to record the reissuance of the 1,000 shares of stock on November 4 includes a:

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When treasury stock is reissued, the cost of the shares is removed from the Treasury Stock account (debit) and the proceeds from the sale are credited to Cash. Any difference between the cost and sale price is recorded in the Additional Paid-In Capital: Treasury Stock Transactions account. Since the cost of the 1,000 shares was $65,000 (1,000 shares x $65 per share), this amount is debited to Treasury Stock Reissued, and the credit of $10,000 goes to Additional Paid-In Capital: Treasury Stock Transactions. There is no gain or loss on the reissuance of treasury stock. Although the par value of the stock is $10 per share, it does not affect the journal entry because the company is not selling the stock at par value.

On April 16,2015,Rodriguez Corporation Reacquired 12,000 Shares of Its Own