When the remaining 7,500 shares are sold, the entry to record the sale includes an increase (debit) to cash for the proceeds received, a decrease (credit) to treasury stock for the repurchase price of $25 per share or $187,500, and a decrease (debit) to additional paid-in-capital × treasury stock, if the account has a balance, for the difference. If the difference between cash received and the cost of the treasury stock is greater than the additional paid-in-capital—treasury stock account, retained earnings is reduced (debited) for the remaining amount after the additional paid-in-capita—treasury stock account balance is reduced to zero. If Soccer Trio Corporation sells the remaining 7,500 shares of its treasury stock for $21, the entry to record the sale would be as shown: General Journal Date Account Title and Description Ref. Debit Credit 20X1 June 25
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