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Salon Company originally issued 4,000 shares of $10 par value common stock for $120,000 ($30 per share). Salon subsequently purchases 400 shares of treasury stock
Salon Company originally issued 4,000 shares of $10 par value common stock for $120,000 ($30 per share). Salon subsequently purchases 400 shares of treasury stock for $27 per share and resells the 400 shares of treasury stock for $29 per share. In the entry to record the sale of the treasury stock, there will be a
credit to Common Stock for $10,800. | ||
credit to Treasury Stock for $4,000. | ||
debit to Paid-In Capital in Excess of Par of $12,000. | ||
credit to Paid-In Capital from Treasury Stock for $800. |
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