Blackland Corporation originally issued 15000 shares of 10 p

Blackland Corporation originally issued 15,000 shares of $10 par value common stock. The original issue price was $15 per share. During the current year, 1,000 of these shares were reacquired for $20 each. What is the balance in the Common Stock account after the reacquisition?

Solution

Common stock account balance will be 15,000*$10 = $150,000. additional $5 will account under additional paid in capital account. at the time reacqusition entire amount will book under treasury stock account and this account will show under stockholders equity statement as seperate line item