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Refurbish, Inc. purchased 1,000 shares of its own stock at $8 a share. Later, it reissued the 1,000 shares for $10,000. The effect of the entry to record the sale of treasury stock on the accounting equation includes a(n): a. $10,000 increase in stockholders' equity. b. $10,000 decrease in stockholders' equity. c. $8,000 increase in stockholders' equity. d. $8,000 decrease in stockholders' equity.

Refurbish, Inc. purchased 1,000 shares of its own stock at $8 a share. Later, it reissued the 1,000 shares for $10,000. The effect of the entry to record the sale of treasury stock on the accounting equation includes a(n): a. $10,000 increase in stockholders' equity. b. $10,000 decrease in stockholders' equity. c. $8,000 increase in stockholders' equity. d. $8,000 decrease in stockholders' equity.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Refurbish, Inc. purchased 1,000 shares of its own stock at $8 a share. Later, it reissued the 1,000 shares for $10,000. The effect of the entry to record the sale of treasury stock on the accounting equation includes a(n): a. $10,000 increase in stockholders' equity. b. $10,000 decrease in stockholders' equity. c. $8,000 increase in stockholders' equity. d. $8,000 decrease in stockholders' equity.
Transcribed Image Text:Refurbish, Inc. purchased 1,000 shares of its own stock at $8 a share. Later, it reissued the 1,000 shares for $10,000. The effect of the entry to record the sale of treasury stock on the accounting equation includes a(n): a. $10,000 increase in stockholders' equity. b. $10,000 decrease in stockholders' equity. c. $8,000 increase in stockholders' equity. d. $8,000 decrease in stockholders' equity.
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