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Reacquistion of Stock

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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

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Solution Summary

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

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