medium · Financial Accounting stockholders-equity
A firm reissues $1,000 treasury shares for $50 per share. These shares were originally repurchased at $40 per share.
How should the $10,000 difference be recorded?
- As a credit to Additional Paid-In Capital — Treasury for $10,000
- As a credit to Gain on Sale of Treasury Stock in the Income Statement for $10,000
- As a credit to Common Stock for $10,000
- As a credit to Retained Earnings for $10,000
Sign up free to see the explanation and track your rank →
More Financial Accounting stockholders-equity practice
- A company repurchases $300,000 of its own stock in the open… — How is this transaction rep
- What is the effect on the accounting equation on the date of declaration?
- What is the required journal entry?
- What is the impact on the Income Statement from the reissuance?
- What is the net effect on the firm's 'Investment in Associate' asset account?
- If the beginning Retained Earnings was $500,000, what is the ending balance of Retained Ea
- What is the impact of the reissuance on the Income Statement?
- What are the incremental shares added for the Diluted EPS calculation?