(( in 2006, ABC co. issued 200,000 of its 500,000 authorized shares of $10 par value common stock at $35 per share. In January, 2007 ABC repurchased 15,000 shares at $30 per share. Assume these are the only stock transaction the company has ever had.
requirment
(a) what are the two methods of accounting for the treasury stock.
(b) perpare the journal entry to record the purchase of treasury stock by the cost method.
(c) 5,000 shares of treasury sotck are reissued at $33 per share. prepare the journal entry to record the reissuance by the cost method. ))