Exhibit 15-9Groundcover, Inc. had never had a treasury stock transaction prior to 2016. It experienced the following treasury stock transactions during 2016:4/1/2016:Reacquired 1,000 shares of its own $5 par common stock, originally sold at $12 a share, for $10 a share. This was the first time that Groundcover had reacquired its own stock.4/8/2016:Reissued 400 shares at $8 a share.5/2/2016:Reissued 500 shares at $13 a share.5/10/2016:Retired the remaining 100 shares.Assume the cost method is used.Refer to Exhibit 15-9. The entry to record the reissuance of 400 shares on 4/8/2016 would include a A. credit to Treasury Stock for $3,200B. credit to Additional Paid-in Capital on Common Stock for $800C. debit to Retained Earnings for $800D. debit to Additional Paid-in Capital from Treasury Stock for $800

Treasury stock refers to a method used by the organization to repurchase the issued stock. It is…

Answered: roundcover, Inc. had never had a…

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Chapter12: Statement Of Stockholders’ Equity (stockeq)

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Exhibit 15-9
Groundcover, Inc. had never had a treasury stock transaction prior to 2016. It experienced the following treasury stock transactions during 2016:

4/1/2016:	Reacquired 1,000 shares of its own $5 par common stock, originally sold at $12 a share, for $10 a share. This was the first time that Groundcover had reacquired its own stock.
4/8/2016:	Reissued 400 shares at $8 a share.
5/2/2016:	Reissued 500 shares at $13 a share.
5/10/2016:	Retired the remaining 100 shares.

Assume the cost method is used.

Refer to Exhibit 15-9. The entry to record the reissuance of 400 shares on 4/8/2016 would include a

A. credit to Treasury Stock for $3,200

B. credit to Additional Paid-in Capital on Common Stock for $800

C. debit to Retained Earnings for $800

D. debit to Additional Paid-in Capital from Treasury Stock for $800

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