Ten thousand shares of $10 par value common stock were issued initially

East Co. issued 2,000 shares of its $5 par common stock to Krannik
May 5, 2020
Pugh Co. reported the following in its statement of equity on January 1:Common
May 5, 2020

Ten thousand shares of $10 par value common stock were issued initially

at $15 per share. Subsequently, 1,000 of these shares were purchased as treasury stock at $13 per share. The cost method of accounting for treasury stock is used. What is the effect of the purchase of the treasury stock on the amount reported in the balance sheet on each of the following? Additional
Total
Paid-in Capital
Equity

No effect
No effect

No effect
Decrease

Decrease
No effect

Decrease
Decrease

 
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