Sale of the treasury shares

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Reference no: EM13863574

In June 2013, a company repurchased 10,000 shares of stock at a price of $10 per share. In July 2013, the company sold 5,000 of those treasury shares for $8 per share. What is the correct journal entry for the July 2013 sale of the treasury shares?

Dr. Cash 40,000

Dr. APIC 10,000

Cr. Treasury Stock 50,000

Dr. Cash 40,000

Cr. APIC 40,000

Dr. Cash 40,000

Cr. Treasury Stock 40,000

Dr. Cash 40,000

Dr. Loss on sale 10,000

Cr. Treasury Stock 50,000

Dr. Cash 50,000

Cr. Treasury Stock 50,000

Reference no: EM13863574

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