Determine reacquisition amount of the stock


On June 15, Bunting Corporation reacquired 12,000 shares of its $10 par value common stock for $18 per share. Bunting uses the cost method to account for treasury stock. The journal entry to record the reacquisition of the stock should debit:

a. Common Stock for $120,000
b. Common Stock for $120,000 and Paid-in Capital in Excess of Par for $96,000
c. Treasury Stock for $216,000
d. Treasury Stock for $120,000

 

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Finance Basics: Determine reacquisition amount of the stock
Reference No:- TGS026314

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