GE purchased back 306,000 shares of its own stock at $51 a share and held...
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Accounting
GE purchased back 306,000 shares of its own stock at $51 a share and held as treasury stock. A couple of months later it reissues this stock for $71 a share. The stock reissue would be recorded with a debit to Cash for:
a. a debit to Cash of $21.73 million, a credit to Treasury Stock of $15.61 million, and a credit to Additional Paid-in Capital - T/S of $6.12 million.
b. a debit to Cash of $21.73 million, a credit to Treasury Stock of $15.61 million, and a credit to Gain on Sale of Treasury Stock for $6.12 million.
c. a debit to Cash of $15.61 million, a debit to Additional Paid-in Capital - T/S of $6.12 million, a credit to Treasury Stock of $15.61 million, and a credit to Stockholders' Equity of $6.12 million.
d. a debit to Cash of $21.73 million and a credit to Treasury Stock of $21.73 million.
e. None of the answer choices are correct.
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