Question
Company reported the following treasury stock transactions during Year 1. March 15: Purchased 1,000 shares for $20 per share June 10: Purchased 1,200 shares for
Company reported the following treasury stock transactions during Year 1.
March 15: Purchased 1,000 shares for $20 per share
June 10: Purchased 1,200 shares for $22 per share
September 20: Sold 800 shares for $23 per share
December 3: Sold 1,000 shares for $15 per share
Company held no treasury stock on January 1, Year 1, and there were no other treasury stock transactions during the year. Company uses the FIFO method to account for treasury shares.
The entry to record the sale of treasury stock on December 3 would include
A debit to retained earnings for $4,200 | ||
A credit to treasury stock for $21,091 | ||
A credit to treasury stock for $15,000 | ||
A debit to additional paid-in capital, treasury stock for $6,600 |
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