On September 1, 2014, Valdez Company reacquired 20,000 shares of its $10 par val
ID: 2751451 • Letter: O
Question
On September 1, 2014, Valdez Company reacquired 20,000 shares of its $10 par value common stock for $15 per share. Valdez uses the cost method to account for treasury stock. The journal entry to record the reacquisition of the stock should debit
On September 1, 2014, Valdez Company reacquired 20,000 shares of its $10 par value common stock for $15 per share. Valdez uses the cost method to account for treasury stock. The journal entry to record the reacquisition of the stock should debit
A) Treasury Stock for $200,000.B) Common Stock for $200,000.
C) Common Stock for $200,000 and Paid-in Capital in Excess of Par for $75,000.
D) Treasury Stock for $300,000.
Explanation / Answer
B. Common stock for $200000