Following is the stockholders’ equity section of the balance sheet of Red Corporation: Paid-in capital:
Preferred Stock, 5 percent, Cumulative $50.00 par, 35,000 shares authorized, 7,000
shares issued $ 350,000.00
Common stock, $5.00 par, 140,000 shares authorized, 50,000 shares issued $ 250,000.00
Paid-in Capital in excess of Par-Common $ 202,500.00
Total Paid-in Capital $ 802,500.00
Retained Earnings $ 204,500.00
Total Stockholders' Equity $ 1,007,000.00
The entry to record Red’s purchase of 10,000 shares of its common stock at $75.00 per share
includes a
(1 poin
debit to treasury stock for $750,000.
debit to retained earnings for $750,000.
credit to common stock for $50,000.
credit to paid-in capital from treasury stock transaction for $700,000.