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  3. ge purchased back 306,000 shares of its own stock

GE purchased back 306,000 shares of its own stock at $51 a share and held...

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Accounting

GE purchased back 306,000 shares of its own stock at $51 a share and held as treasury stock. A couple of months later it reissues this stock for $71 a share. The stock reissue would be recorded with a debit to Cash for:

a. a debit to Cash of $21.73 million, a credit to Treasury Stock of $15.61 million, and a credit to Additional Paid-in Capital - T/S of $6.12 million.

b. a debit to Cash of $21.73 million, a credit to Treasury Stock of $15.61 million, and a credit to Gain on Sale of Treasury Stock for $6.12 million.

c. a debit to Cash of $15.61 million, a debit to Additional Paid-in Capital - T/S of $6.12 million, a credit to Treasury Stock of $15.61 million, and a credit to Stockholders' Equity of $6.12 million.

d. a debit to Cash of $21.73 million and a credit to Treasury Stock of $21.73 million.

e. None of the answer choices are correct.

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