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23 February, 21:47

N December 2, Coley Corp. acquired 1,700 shares of its $2 par value common stock for $21 each. On December 20, Coley Corp. resold 1,300 shares for $12 each. Which of the following is correct regarding the journal entry for the resold shares?

Credit Additional Paid-in Capital $7,000

Credit Treasury Stock $20,000

Debit Cash $15,400

Credit Treasury Stock $11,000

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  1. 24 February, 01:11
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    Credit Treasury Stock $20,000

    Explanation:

    When the company reissued the shares, the Treasury Stock account is credited by the same price they were acquire. i. e. in this case we acquire the treasury stock at a price of $20.

    Cash (1,000 * 12) 12,000

    Additional Paid in Capital 8,000

    Treasury Stock (1,000 * 20) 20,000
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Home » Business » N December 2, Coley Corp. acquired 1,700 shares of its $2 par value common stock for $21 each. On December 20, Coley Corp. resold 1,300 shares for $12 each.
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