Porter Corporation holds 10,000 shares of its $10 par common stock as treasury stock, which was purchased in 2013 at a cost of $140,000. On December 10, 2014, Porter sold all 10,000 shares for $260,000. Assuming that Porter used the cost method of accounting for treasury stock, this sale would result in a credit to Paid-In Capital from Treasury Stock of $110,000. Retained Earnings of $120,000. Gain on Sale of Treasury Stock of $120,000. Paid-In Capital from Treasury Stock of $120,000.
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Porter Corporation holds 10,000 shares of its $10 par common stock as
Porter Corporation holds 10,000 shares of its $10 par common stock as treasury stock, which was purchased in 2013 at a cost of $140,000. On December 10, 2014, Porter sold all 10,000 shares for $260,000. Assuming that Porter used the cost method of accounting for treasury stock, this sale would result in a credit to
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Paid-In Capital from Treasury Stock of $110,000. |
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Gain on Sale of Treasury Stock of $120,000. |
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Paid-In Capital from Treasury Stock of $120,000. |
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