Question

Prior to May 1, Fortune Company has never had any treasury stock transactions. A company repurchased 100 shares of its common stock on May 1 for $5,000. On July 1, it reissued 50 of these shares at $52 per share. On August 1, it reissued the remaining treasury shares at $49 per share. What is the balance in the Paid-in Capital, Treasury Stock account on August 2?

Answer 1

Answer:

$50

Explanation:

Fortune Company

Paid-in capital,Treasury stock:

May1 $ 0

July 1: $2/share *50 shares 100

August 1:$1/share*50 shares (50)

Balance August 2 $ 50

Therefore the balance in the Paid-in Capital, Treasury Stock account on August 2 will be $50