On December 31, 2012 Revel Corporation\'s balance sheet reported the following. During 2013, 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 EFFECT THIS CHANGE. Solution C COMMON stock (20000 x1) 20000 Paid-in Capital in Excess of Par 80000 Retained earning -difference 525 000 Treasury stock 625 000 4M/1M=$4 4X 20000=80000 .

1. On December 31, 2012 Revel Corporation's balance sheet reported the following.
During 2013, 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 EFFECT THIS
CHANGE.
Common Stock, $1 Par 1,000,000
Paid-in Capital in Excess of Par 4,000,000
Retained Earnings 5,280,000
Treasury Stock (20,000 shares at cost) (625,000)
Solution
C
COMMON stock (20000 x1)
20000
Paid-in Capital in Excess of Par
80000
Retained earning -difference
525 000
Treasury stock
625 000
4M/1M=$4

2. 4X 20000=80000
COMMON stock (20000 x1) 20000
Paid-in Capital in Excess of Par 80000
Retained earning -difference 525 000
Treasury stock 625 000