Explore BrainMass

Explore BrainMass

    Reacquistion of Stock

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    On June 15, Bunting Corporation reacquired 12,000 shares of its $10 par value common stock for $18 per share. Bunting uses the cost method to account for treasury stock. The journal entry to record the reacquisition of the stock should debit:

    a. Common Stock for $120,000
    b. Common Stock for $120,000 and Paid-in Capital in Excess of Par for $96,000
    c. Treasury Stock for $216,000
    d. Treasury Stock for $120,000

    © BrainMass Inc. brainmass.com June 4, 2020, 3:06 am ad1c9bdddf
    https://brainmass.com/business/finance/reacquistion-of-stock-498828

    Solution Summary

    This solution discusses the proper journal entry needed to record the reacquisition of the stock for Bunting Corporation.

    $2.19

    ADVERTISEMENT