On January 1, Vermont Corporation had 40,000 shares of $10 par value common stock issued and...
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On January 1, Vermont Corporation had 40,000 shares of $10 par value common stock issued and outstanding. All 40,000 shares had been issued in a prior period at $20.00 per share. On February 1, Vermont purchased 3,750 shares of treasury stock for $24 per share and later sold the treasury shares for $21 per share on March 1. The journal entry to record the purchase of the treasury shares on February 1, would include a 1. credit to Treasury Stock for $90,000 2. debit to Treasury Stock for $90,000 3. debit to a loss account for $112,500 4. credit to a gain account for $112,500 On January 1, Vermont Corporation had 40,000 shares of $10 par value common stock issued and outstanding. All 40,000 shares had been issued in a prior period at $20.00 per share. On February 1, Vermont purchased 3,750 shares of treasury stock for $24 per share and later sold the treasury shares for $21 per share on March 1. The journal entry to record the purchase of the treasury shares on February 1, would include a 1. credit to Treasury Stock for $90,000 2. debit to Treasury Stock for $90,000 3. debit to a loss account for $112,500 4. credit to a gain account for $112,500
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Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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