Question

Five thousand shares of treasury stock of Marker, Inc., previously acquired at $14 per share, are sold at $20 per share. The entry to record this transaction will include a Group of answer choices credit to Treasury Stock for $100,000. debit to Paid-In Capital from Treasury Stock for $30,000. debit to Treasury Stock for $70,000. credit to Paid-In Capital from Treasury Stock for $30,000.

Answer 1

Answer:

credit to Paid-In Capital from Treasury Stock for $30,000.

Explanation:

The Journal entry is shown below:-

Cash Dr, $100,000

(5,000 × $20)

    To Treasury stock $70,000

(5000 × $14)

    To Additional paid in capital $30,000

(5000 × $6)

Therefore we debited the cash as liability is increasing and we credited the treasury stock and additional paid in capital as it also increasing the liability.