Question

Five thousand shares of treasury stock of Marker, Inc., previously acquired at $14 per share, are sold at $20 per share. The entry to record this transaction will include a:_________ a) debit to Treasury Stock for $70,000 b) debit to Paid-in Capital from Treasury Stock for $30,000 c) credit to Treasury Stock for $100,000 d) credit to Paid-in Capital from Treasury Stock for $30,000

Answer 1

d) credit to Paid-in Capital from Treasury Stock for $30,000

Step-by-step explanation:

The entry for profit in sale of treasury stock is as computed below

Account Details Debit Credit

Cash (5000*20) $100,000

To treasury stock (5000*14) $70,000

To Additional paid in capital (5000*6) $30,000