CPA · Question 33 · Area II: Balance Sheet Accounts
A company uses the Cost Method for treasury stock. <br/>- Original Issue: 10,000 shares at $10 par for $15.<br/>- Repurchase: 1,000 shares at $20.<br/>- Reissue: 500 shares at $25.<br/><br/>What is the journal entry for the reissuance?
Answer options:
Dr Cash $12,500; Cr Treasury Stock $5,000; Cr APIC $7,500
Dr Cash $12,500; Cr Treasury Stock $10,000; Cr APIC-TS $2,500
Dr Cash $12,500; Cr Treasury Stock $10,000; Cr Retained Earnings $2,500
Dr Cash $12,500; Cr Common Stock $5,000; Cr APIC $7,500
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