In Year 1, Rona Corp. issued 5,000 shares of $10 par value common

Pugh Co. reported the following in its statement of equity on January 1:Common
May 5, 2020
MATERIALS AND MANUFACTURING LABOR VARIANCES, STANDARD COSTSDunn, Inc.,
May 5, 2020

In Year 1, Rona Corp. issued 5,000 shares of $10 par value common

stock for $100 per share. In Year 7, Rona reacquired 2,000 shares at $150 per share from the estate of one of its deceased officers and immediately canceled these 2,000 shares. Rona uses the cost method in accounting for its treasury stock transactions. In connection with the retirement of these 2,000 shares, Rona should debit

Additional
Retained
Paid-in Capital

Earnings

$20,000
$280,000

$100,000
$180,000

$180,000
$100,000

$280,000
$

 
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