Journal entry to record the reacquisition of the stock


On September 1, 2008, Zelner Company reacquired 12,000 shares of its $10 par value common stock for $15 per share. Zelner uses the cost method to account for treasury stock. The journal entry to record the reacquisition of the stock should debit

a. Treasury Stock for $120,000.

b. Common Stock for $120,000.

c. Common Stock for $120,000 and Paid-in Capital in Excess of Par for $60,000.

d. Treasury Stock for $180,000.

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Accounting Basics: Journal entry to record the reacquisition of the stock
Reference No:- TGS096373

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