Fleek Dress Company previously purchased 8,000 shares of treasury stock on the open market for $8 per share. Later, the company resells 5,000 shares for $10 per share.
Question
Fleek Dress Company previously purchased 8,000 shares of treasury stock on the open market for $8 per share.
Later, the company resells 5,000 shares for $10 per share. What is the journal entry for the sale?
Question 2 options:
debit cash, $50,000; credit treasury stock, $50,000
debit cash, $50,000; credit treasury stock, $40,000; credit retained earnings, $10,000
debit cash, $50,000; credit treasury stock, $10,000; credit additional paid-in capital, $40,000
debit cash, $50,000; credit treasury stock, $40,000; credit additional paid-in capital—treasury stock, $10,000
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