Question

At the start of 20X5, Evans Corp. had 15,000 shares of $6 par common stock issued and outstanding. All 15,000 shares had been issued in the prior year for $20 per On February 1, 20X5, Evans repurchased 2,000 shares of its own stock for $12 per share. It plans to reissue these shares at a future time. Question: What journal entry should Evans make to record the February 1, 20X5 transaction? Answer: It should debit | for $ and credit for S
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Answer #1

The journal entry for the transaction would be

Treasury stock (2000*12) 24,000
Cash 24,000

It should debit treasury stock for 24,000and credit cash for 24,000

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