On 6/30, Office Depot purchased 17,000 shares of treasury stock at $9 per share. On 11/1, Office Depot resold half of the treasury shares for $4 per share. On 11/1, what should be recorded as a debit to the Additional Paid-in-capital account?

$42,500

Explanation:

Number of shares sold = 17,000 shares * 1/2 = 8,500  

Cost per share = $9

Selling price per share = $4

Date       General Journal                    Debit         Credit

11/1          Cash                                     $34,000

              (8,500 * $4)

              Additional paid in capital    $42,500

              [8,500*($9 - $4)]

                     Treasury stock                                 $76,500

              (To record sale of treasury stock)

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