Final answer:
The account debited to record the repurchase of its own shares by ABC Co. is the Treasury Stock account. This is a contra equity account that holds the cost of repurchased shares, which in this case would be $100 for the 10 shares bought back at $10 per share.
Step-by-step explanation:
When ABC Co. repurchased its own shares on February 1st, 2022, the account that should be debited to record this transaction is the Treasury Stock account.
The entry to record the purchase of 10 shares at $10 per share would involve a debit to Treasury Stock for $100 (10 shares x $10 per share) and a credit to Cash for $100, assuming the purchase was paid in cash.
The Treasury Stock account is a contra equity account and represents the amount of shares that have been repurchased by the company and held in its treasury.
These shares do not confer voting rights and do not receive dividends.
The cost method is typically used to record these transactions, where the cost of the repurchased shares is recorded in the Treasury Stock account.