On December 31, 2023, Rulz Corporation's balance sheet reported the following. Common stock, $1 par $ 1,000,000 4,300,000 Paid-in capital-excess of par 5,310,000 (690,000) Retained earnings Treasury stock (23,000 shares at cost) During 2024, Ruiz decided to discontinue accounting for share buybacks as treasury shares. Instead, the shares will be treated as having been retired. Required: Prepare the appropriate journal entry to effect this change. Note: If no entry is required for a transaction/event, select "No Journal entry required" in the first account field. View transaction list Journal entry worksheet

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On December 31, 2023, Rulz Corporation's balance sheet reported the following.
$ 1,000,000
4,300,000
5,310,000
(690,000)
Common stock, $1 par
Paid-in capital-excess of par
Retained earnings
Treasury stock (23,000 shares at cost)
During 2024, Ruiz decided to discontinue accounting for share buybacks as treasury shares. Instead, the shares will be treated as
having been retired.
Required:
Prepare the appropriate journal entry to effect this change.
Note: If no entry is required for a transaction/event, select "No Journal entry required" in the first account fleld.
View transaction list
Journal entry worksheet
<
1
Record the entry to reclassify treasury shares as retired shares.
Transcribed Image Text:On December 31, 2023, Rulz Corporation's balance sheet reported the following. $ 1,000,000 4,300,000 5,310,000 (690,000) Common stock, $1 par Paid-in capital-excess of par Retained earnings Treasury stock (23,000 shares at cost) During 2024, Ruiz decided to discontinue accounting for share buybacks as treasury shares. Instead, the shares will be treated as having been retired. Required: Prepare the appropriate journal entry to effect this change. Note: If no entry is required for a transaction/event, select "No Journal entry required" in the first account fleld. View transaction list Journal entry worksheet < 1 Record the entry to reclassify treasury shares as retired shares.
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