Question: Doylene Company recently purchased/retired some of its outstanding common stock. Doylene had 40,000 shares of $6 Par stock ($240,000 of Par outstanding), with related Paid-In-Capital in excess of par totaling $400,000 on January 1, 2016. It was on July 4, 2016, the Company reacquired, and retired, 8,000 of these shares for a total price of $125 ,000. Answer the following questions about the journal entry required to record this retirement:
1. The debit to common stock would be for how much?
2. The deibt to Paid-In-Capital in Excess of Par would be for how much?
3. How much would the debit or credit to Retained Earnings be?