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Question
The shareholders equity section of the Jason Company as of December 31, 2015 is as follows:
| Common stock | $180,000 |
| Additional paid-in capital (Common stock) | 110,000 |
| Retained earnings | 160,000 |
| Total shareholders equity | $450,000 |
On January 15, the company repurchased 1,500 shares of its own stock at $60 for treasury stock. On January 16, as part of a compensation package, the company reissued half of the treasury shares to executives who exercised stock options for $20 per share. On January 28, the company reissued the remainder of the treasury stock on the open market for $65 per share. Which of the following would be included in the journal entry recorded on January 28?
a. a credit to Treasury Stock for $48,750.
b. a credit to Additional Paid-In Capital, Treasury Stock for $48,750.
c. a debit to Cash for $45,000.
d. a credit to Additional Paid-In Capital, Treasury Stock for $3,750.
Answer
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