Gannon Company acquired 6,000 shares of its own common stock at $20 per share on February 5,
Question:
Gannon Company acquired 6,000 shares of its own common stock at $20 per share on February 5, 2010, and sold 3,000 of these shares at $27 per share on August 9, 2011. The market value of Gannon's common stock was $24 per share at December 31, 2010, and $25 per share at December 31, 2011. The cost method is used to record treasury stock transactions. What account(s) should Gannon credit in 2011 to record thesale of 3,000 shares?
a. Treasury Stock for $81,000.
b. Treasury Stock for $60,000 and Paid-in Capital from Treasury Stock for $21,000.
c. Treasury Stock for $60,000 and Retained Earnings for $21,000.
d. Treasury Stock for $72,000 and Retained Earnings for $9,000.
Common StockCommon stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Step by Step Answer:
Computation of the Following Given information Treasury st...View the full answer
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
