On December 2, Coley Corp. acquired 1,500 shares of its $3 par value common stock for $20 each. On December 20, Coley Corp. resold 1,100 shares for $10 each. Which of the following is correct regarding the journal entry for the resold shares?   Multiple Choice   Debit Cash $15,000   Credit Treasury Stock $11,000   Credit Additional Paid–in Capital $7,700   Credit Treasury Stock $22,000

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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.