Prior to june 30, a company has never had any treasury stock transactions. a company repurchased 100 shares of its $1 par common stock on june 30 for $40 per share. on july 20, it reissued 50 of these shares at $46 per share. on august 1, it reissued 20 of the shares at $38 per share. what is the journal entry necessary to record the repurchase of stock on june 30? multiple choice debit common stock $4,000; credit cash $4,000. debit common stock $100; debit treasury stock $3,900; credit cash $4,000. debit treasury stock $3,900; debit paid-in capital, treasury stock $100; credit cash $4,000. debit treasury stock, common $4,000; credit cash $4,000.

Respuesta :

Answer:

42 I think

Explanation:

Answer:

treasury stock     4,000 debit

             cash                        4,000 credit

Explanation:

100 shares x $40 each = 4,000

Treasury stock are recorded at cost. Thus we use the market value per share (which is the cash the company pay for them) to determinate the value of the treasury stock rather than face value