Question
Stromboli Company acquired 30,000 shares of its own common stock at $22 per share on February 5, 2017, and sold 10,000 of these shares at
-
Stromboli Company acquired 30,000 shares of its own common stock at $22 per share on February 5, 2017, and sold 10,000 of these shares at $29 per share on August 9, 2018. The fair value of Gannon's common stock was $24 per share at December 31, 2017, and $27 per share at December 31, 2018. The cost method is used to record treasury stock transactions. What account(s) should Stromboli credit in 2018 to record the sale of 10,000 shares?
a. Treasury Stock for $290,000.
b. Treasury Stock for $200,000 and Paid-in Capital from Treasury Stock for $70,000.
c. Treasury Stock for $240,000 and Paid-in Capital from Treasury Stock for $30,000.
d. Treasury Stock for $220,000 and Paid-in Capital from Treasury Stock for $70,000.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started