A company paid $20 per share to purchase 500 shares of its common stock as treasury stock. The stock was originally issued at $15 per share. The journal entry to record the purchase of the treasury stock is:
|
Treasury Stock |
10,000 |
|
|
Cash |
10,000 |
|
|
Treasury Stock |
7,500 |
|
|
Retained Earnings |
2,500 |
|
|
Cash |
10,000 |
|
|
Treasury Stock |
5,000 |
|
|
Paid in Capital in Excess of Par |
5,000 |
|
|
Cash |
10,000 |
|
|
Common Stock |
10,000 |
|
|
Cash |
10,000 |