Izzy Corporation purchased some of its own common stock from the marketplace in January of 2016. Izzy paid $20 per share to purchase 1,000 shares of its $10 par value stock. (Note that this is the first treasury stock transaction that Izzy has undertaken.) On December 1, 2016, Izzy reissued all 1,000 shares of treasury stock at $18 per share. The journal entry to record this reissue would include:

A. a debit to Retained Earnings for $2,000

B. a credit to Treasury Stock for $18,000

C. a credit to Additional Paid-in Capital on Treasury Stock for $2,000

D. a credit to Cash for $18,000

Question

Izzy Corporation purchased some of its own common stock from the marketplace in January of 2016. Izzy paid $20 per share to purchase 1,000 shares of its $10 par value stock. (Note that this is the first treasury stock transaction that Izzy has undertaken.) On December 1, 2016, Izzy reissued all 1,000 shares of treasury stock at $18 per share. The journal entry to record this reissue would include:

A. a debit to Retained Earnings for $2,000

B. a credit to Treasury Stock for $18,000

C. a credit to Additional Paid-in Capital on Treasury Stock for $2,000

D. a credit to Cash for $18,000

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Izzy Corporation purchased some of its own common stock from the marketplace in January of 2016. Izzy paid $20 per share to purchase 1,000 shares

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