On December 31, 2020, Rebel Corporation's balance sheet reported the following. Common stock, $1 par Paid-in...

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On December 31, 2020, Rebel Corporation's balance sheet reported the following. Common stock, $1 par Paid-in capital-excess of par Retained earnings Treasury stock (20,000 shares at cost) $1,000,000 4,000,000 5,280,000 (625,000) During 2021, Rebel decided to discontinue accounting for share buybacks as treasury shares. Instead, the shares will be treated as having been retired. Required: Prepare the appropriate journal entry to effect this change. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) On December 31, 2020, Rebel Corporation's balance sheet reported the following. Common stock, $1 par Paid-in capital-excess of par Retained earnings Treasury stock (20,000 shares at cost) $1,000,000 4,000,000 5,280,000 (625,000) During 2021, Rebel decided to discontinue accounting for share buybacks as treasury shares. Instead, the shares will be treated as having been retired. Required: Prepare the appropriate journal entry to effect this change. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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To make the appropriate journal entry to reflect the change in treating share buybacks as r... View the full answer