Record the journal entry for the share repurchase

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Spacely Sprockets, Inc. issued 50 shares of $1 par value common stock for $25 per share from treasury stock. The stock was repurchased for $20 per share a year earlier.

Problem 1: Record the journal entry for this share repurchase.

Option 1: Cr. Treasury Stock -- $1000

Option 2: Dr. Common Stock at par -- $50

Option 3: Cr. Treasury Stock -- $1250

Option 4: Dr. Cash -- $1250

Option 5: Cr. Additional paid-in capital -- $250

Reference no: EM132968570

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