On October 1, 2021, Adoll Company acquired 2,600 shares of its $1 par value stock for $38 per share and held these shares in treasury. On March 1, 2023, Adoll resold all the treasury shares for $34 per share. Which of the following entries would be recorded when Adoll Company resells the shares of treasury stock?

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Account Title Cash Additional paid-in capital Treasury Stock Account Title Cash Loss on sale of treasury stock Treasury Stock Account Title Cash Additional paid-in capital Common Stock Account Title Cash Common Stock Additional paid-in capital Debit 88,400 10,400 Debit 88,400 10,400 Debit 88,400 10,400 Debit 88,400 Credit 98,800 Credit 98,800 Credit 98,800 Credit 2,600 85,800 Account Title Cash Additional paid-in capital Treasury Stock Account Title Cash Loss on sale of treasury stock Treasury Stock Account Title Cash Additional paid-in capital Common Stock Account Title Cash Common Stock Additional paid-in capital Debit 88,400 10,400 Debit 88,400 10,400 Debit 88,400 10,400 Debit 88,400 Credit 98,800 Credit 98,800 Credit 98,800 Credit 2,600 85,800

Answer rating: 100% (QA)

The difference between purchase cost and resell cost of the treasur... View the full answer