Question

Concord Corporation acquired 21200 shares of its own common stock at $22 per share on February 5, 2017, and sold 10600 of these shares at $29 per share on August 9, 2018. The fair value of Concord's common stock was $26 per share at December 31, 2017, and $27 per share at December 31, 2018. The cost method is used to record treasury stock transactions. What account(s) should Concord credit in 2018 to record the sale of 10600 shares

Answer 1

Answer:

in 2018, treasury stock-common and paid in capital on treasury stock will be credited by following amounts.

Explanation:

Feb 5,2017

Treasury Stock           21,200*22              Dr.$466,400

Cash                                                           Cr.$466,400

August 9,2018

Cash 10,600*29                 Dr.$307,400

Treasury Stock-common Stock 10,600*22  Cr.$233,200

Paid in Capital-Treasury Stock   10,600*(29-22)    $74,200