On December 31, 2015, Rebel Corporation's balance sheet reported the following. ...
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Accounting
On December 31, 2015, Rebel Corporation's balance sheet reported the following.
Common stock, $1 par
$
1,000,000
Paid-in capitalexcess of par
5,000,000
Retained earnings
5,380,000
Treasury stock (30,000 shares at cost)
(900,000
)
During 2016, Rebel decided to discontinue accounting for share buybacks as treasury shares. Instead, the shares will be treated as having been retired.
Required:
Prepare the appropriate journal entry to reclassify treasury shares as retired shares. (Do not round your per share amounts. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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