Question
Aggie Corp. began operations on 1/1/15 and issued all of its preferred and common shares at that time. The following information pertains to Aggie Corp.
Aggie Corp. began operations on 1/1/15 and issued all of its preferred and common shares at that time. The following information pertains to Aggie Corp. for the year ended December 31, 2016 (i.e., year 2 of operations):
Balance Sheet (partial)
Preferred stock, 5% cumulative, $10 par | $400,000 |
Additional paid-in capital - preferred | 800,000 |
Common stock, $1 par | 1,000,000 |
Additional paid-in capital - common | 5,000,000 |
Treasury stock (50,000 shares) | 400,000 |
Beginning Retained Earnings (1/1/16) | 800,000 |
Additional Information
Net Income for 2016 | $5,000,000 |
Dividends declared and paid on December 31, 2016 | 250,000 |
On 1/5/17, Aggie Corp. reissues 1,000 shares of Treasury Stock for a price of $5 per share. Aggie Corp. has never reissued shares of Treasury Stock before.
What journal entry should Aggie Corp. record for the reissuance? Please clearly label your debits and credits, as follows:
Debit: [account name] XXXX
Credit: [account name] XXXX
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