Prepare journal entry to reclassify treasury shares

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Question - On December 31, 2017, Rebel Corporation's balance sheet reported the following.

Common stock, $1 par$1,000,000 Paid-in capital-excess of par 3,700,000 Retained earnings 5,250,000 Treasury stock (17,000 shares at cost) (510,000)

During 2018, Rebel decided to discontinue accounting for share buybacks as treasury shares. Instead, the shares will be treated as having been retired.

Required - Prepare the appropriate journal entry to reclassify treasury shares as retired shares.

Reference no: EM132597128

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