Common Stock - par $1, 10,000 shares = $10,000 Preffered stock 10% (par $1, 100,000 shares)...

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Common Stock - par $1, 10,000 shares = $10,000 Preffered stock 10% (par $1, 100,000 shares)...

Common Stock - par $1, 10,000 shares = $10,000

Preffered stock 10% (par $1, 100,000 shares) = $100,000

Paid in Capital in Excess of Par $500,000

What is the journal entry if the company resold 1,000 shares of treasury stock at $10 cash per share?

business accounting

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Answer 1

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--When treasury stock is re issued:
>Cash is debited by the amount of cash received.
>Treasury stock is credited by the amount of 'cost' of those shares.
>Any difference on credit side is recorded to 'Paid in Capital from Treasury Stock' account.

--Assuming that shares are re issued at $ 10 which was also the cost at which these shares are re purchased, following entry will be recorded:

Accounts title	Debit	Credit
Cash (1000 shares x $ 10)	$10,000
Treasury Stock		$10,000
Paid in Capital for Treasury Stock
(to record re issue of stock)

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Answer 2

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