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On January 1, 2020, the stockholders’ equity section of Sarasota Corporation shows common stock ($5 par value) $1,500,000; paid-in capital in excess of par $1,050,000; and retained earnings $1,230,000. During the year, the following treasury stock transactions occurred. Oct. 1; Sold 8,500 treasury shares for cash at $14 per share. Restate the entry for October 1, assuming the treasury shares were sold at $11 per share.
ACCOUNTS ARE:
Cash Dr. (8,500 × $11) = $93,500
Paid in capital from treasury stock Dr. ?
retained earnings Dr. ?
treasury stock Cr. (8,500 × $15) = $127,500
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On January 1, 2020, the stockholders’ equity section of Sarasota Corporation shows common stock ($5...
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