Question

A corporation purchased 1,000 shares of its own $5 par common stock at $10 and subsequently sold 500 of the shares at $17. What is the amount credited to paid in capital - treasury stock?

Answer 1

The amount credited to paid in capital - treasury stock is $3,500.

Capital-treasury stocks

To determine what is the amount credited to paid in capital - treasury stock, the following calculation must be performed:

• 1000 x 5 - 500 x 17 = X
• 5000 - 8500 = X
• -3500 = X

Therefore, the amount credited to paid in capital - treasury stock is $3,500.

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