Question

5 Hinckley Company initially issued 500,000 shares of $1 par common stock for $20 per share. On March 23 of this year, Hinckley repurchased 10,000 shares for a total of $300,000. Hinckley uses the cost method of accounting for treasury stock. Hinckley has never before purchased nor reissued shares of treasury stock. On May 16, Hinckley REISSUED 4,000 of these previously-repurchased shares for a total of $144,000. Which ONE of the following should be included in the journal entry necessary to record the REISSUANCE of these 4,000 shares? CREDIT Paid-in Capital from Treasury Stock for $24,000 CREDIT Paid-in Capital in Excess of Par for $120,000 CREDIT Gain on Common Stock Reissuance for $24,000 ? CREDIT Retained Earnings for $24,000 FEEDBACK 0/11 (0.0%) X

          5
Hinckley Company initially issued 500,000 shares of $1 par common stock for $20 per share. On March
23 of this year, Hinckley repurchased 10,000 shares for a total of $300,000. Hinckley uses the cost
method of accounting for treasury stock. Hinckley has never before purchased nor reissued shares of
treasury stock. On May 16, Hinckley REISSUED 4,000 of these previously-repurchased shares for a total
of $144,000. Which ONE of the following should be included in the journal entry necessary to record the
REISSUANCE of these 4,000 shares?
CREDIT Paid-in Capital from Treasury Stock for $24,000
CREDIT Paid-in Capital in Excess of Par for $120,000
CREDIT Gain on Common Stock Reissuance for $24,000
? CREDIT Retained Earnings for $24,000
FEEDBACK
0/11 (0.0%)
X

5
Hinckley Company initially issued 500,000 shares of 1 par common stock for20 per share. On March
23 of this year, Hinckley repurchased 10,000 shares for a total of 300,000. Hinckley uses the cost
method of accounting for treasury stock. Hinckley has never before purchased nor reissued shares of
treasury stock. On May 16, Hinckley REISSUED 4,000 of these previously-repurchased shares for a total
of144,000. Which ONE of the following should be included in the journal entry necessary to record the
REISSUANCE of these 4,000 shares?
CREDIT Paid-in Capital from Treasury Stock for 24,000
CREDIT Paid-in Capital in Excess of Par for120,000
CREDIT Gain on Common Stock Reissuance for 24,000
? CREDIT Retained Earnings for24,000
FEEDBACK
0/11 (0.0%)
X

Added by Kyle U.

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