Question

Copper, Inc., initially issued 100,000 shares of $1 par value stock for $500,000 in 2013. In 2015, the company repurchased 10,000 shares for $100,000. In 2016, 5,000 of the repurchased shares were resold for $80,000. In its balance sheet dated December 31, 2016, Copper, Inc.’s Treasury Stock account shows a balance of:a. $ 0b. $ 20,000c. $ 50,000d. $100,000

Answer 1

c. $50,000

Step-by-step explanation:

Dr Cash 500,000

Cr Common stock 100,000

Cr Additional paid in capital 400,000

Dr Treasury stock 100,000

Cr Cash 100,000

Dr Cash 80,000

Cr Treasury stock 50,000

Cr Additional paid in capital 30,000

Treasury stock's balance = $100,000 - $50,000 = $50,000 debit