Grunted law offices paid 59,000 to buy back 14,000 shares of its $1 par value common stock. The stock was sold later at a selling price of $15 per share. The journal entry to record the sale would include a DO NOT ROUND INTERMEDIATE CALCULATIONS -debit to common stock 59,000 Credits to paid in capital from treasury stock transaction 151,000 Credit to common stock 151,000 Credit to paid in capital from treasury stock transactions 59,000

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A: a.

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.