10. T Corporation is authorized to issue 500,000 common stock at $10 par value. As of December 31, 2019 the corporation has 350,000 common stockissued and outstanding. On February 14, 2020, the market price of the stock is $17. On the same date, T Corporation acquired 50,000 stocks at $15. OnMarch 5, 2020, the company reissued 25% of the treasury stocks at $20. Which of the following will be included in the entry to record the transaction onMarch 5, 2020?Debit Treasury Shares $187,500Debit Common Stock $250,000Credit Additional Paid-in Capital $62,500Credit Cash $250,000

Treasury stock is stock that was previously outstanding but has been repurchased and is now held by…

Answered: the company reissued 25% of the…

the company reissued 25% of the treasury stocks at $20. Which of the following will be included in the entry to record the transaction

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

10. T Corporation is authorized to issue 500,000 common stock at $10 par value. As of December 31, 2019 the corporation has 350,000 common stock
issued and outstanding. On February 14, 2020, the market price of the stock is $17. On the same date, T Corporation acquired 50,000 stocks at $15. On
March 5, 2020, the company reissued 25% of the treasury stocks at $20. Which of the following will be included in the entry to record the transaction on
March 5, 2020?
Debit Treasury Shares $187,500
Debit Common Stock $250,000
Credit Additional Paid-in Capital $62,500
Credit Cash $250,000

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