A company reissued at $20 per share 100 shares of treasury stock that it had previously acquired for $26 per share and there was not any Paid-in Capital from Treasury Stock. Prepare the journal entry. Solution Journal Entry Note : There is no paid in capital from Treasury Stock therefore Loss on issue of Treasury Stock is being transfered to retained earning .

1. A company reissued at $20 per share 100 shares of treasury stock that it had previously acquired
for $26 per share and there was not any Paid-in Capital from Treasury Stock. Prepare the journal
entry.
Solution
Journal Entry
Note : There is no paid in capital from Treasury Stock therefore Loss on issue of Treasury Stock
is being transfered to retained earning
Date Account Title & Explaination Debit Credit
Cash 2000
Retained Earning 600
Treasury Stock 2600