[Peachey]

The stockholders' equity section of Joe's Bistro's balance sheet on January 1:
Common stock $2 par, 2,000 share issued and outstanding – 4,000
Additional Paid-in Capital – 1,600
Retained earnings – 5,400.

On March 1, Joe's Bistro reacquired 600 shares of common stock at $10 per share. Joe's Bistro sold all of the treasury shares on November 15 for $12 per share. The entry to record the sale of November 15 would include a credit to what account and for what amount?

My working am i correct
Debit. Cash (600 * 12)------------7,200
Credit. Treasury Stock (600 * 10)--------6,000
Credit. Paid-In Capital -------------------1,200

[morgaine300]

Are you back to bug us again? :D:eek:;)

The numbers and concept are correct. But depending on your book, you may want to use "paid-in capital from sale of treasury stock." It'll depend if they separate out the excess amounts between preferred, common and treasury sales.

[Peachey]

Happy New Year to you also and yes I am back. Thank you for the help.

[morgaine300]

You're welcome, and Happy New Year to you too!