Question
Aston Industries has the following information available: Common Stock -- $0.01 par value ..............................................................................$3,000 Additional Paid-in Capital - Common Stock.......................................................$2,496,000 Treasury Stock -- 5,000 shares
Aston Industries has the following information available:
Common Stock -- $0.01 par value ..............................................................................$3,000
Additional Paid-in Capital - Common Stock.......................................................$2,496,000
Treasury Stock -- 5,000 shares at a cost of $10.22 ...................................................$76,500
Additional Paid-in Capital - Treasury Stock..................................................................$340
Retained Earnings ...................................................................................................$487,000
At the end of the year, Ashton Industries received $22,725 cash by re-issuing 2,250 shares of its common stock to employees. The journal entry to record the re-issuance of the treasury stock would include a:
A) Credit to additional paid-in capital treasury stock for $270.
B) Credit to treasury stock for $22,995.
C) Debit to additional paid-in capital treasury stock for $340.
D) Debit to treasury stock for $22,725.
E) Debit to retained earnings for $270.
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