Please how i write this up in a journal entry: The stockholders’ equity section of Joe’s Bistro’s balance sheet on January 1: Common stock $2 par, 2,000 share issued and outstanding – 4,000; Additional Paid-in Capital – 1,600; retained earnings – 5,400. On March 1, Joe’s Bistro reacquired 600 shares of common stock at $10 per share. Joe’s Bistro sold all of the treasury shares on November 15 for $12 per share. The entry to record the sale of November 15 would include a credit to what account and for what amount?

I review the tutorials but there is nothing concerning how should i calculate the question.

I think i got it but is the journal entry correct.

Dr Cash (600 x 12) --- 7,200
Cr Treasury Stock (100 x10)---- 6,000
Cr Paid-In Capital--------------1,200

To write this up in a journal entry, you can follow these steps:

Step 1: Understand the given information:
- On January 1, the stockholders' equity section of Joe's Bistro's balance sheet was composed of: Common stock ($2 par, 2,000 shares issued and outstanding) - $4,000; Additional Paid-in Capital - $1,600; Retained Earnings - $5,400.
- On March 1, Joe's Bistro reacquired 600 shares of common stock at $10 per share.
- On November 15, Joe's Bistro sold all of the treasury shares for $12 per share.

Step 2: Prepare the journal entry for March 1 (reacquisition of treasury stock):
To record the reacquisition of 600 shares of common stock at $10 per share, the journal entry would be as follows:
Date: March 1
Debit: Treasury Stock ($10 x 600) - $6,000
Credit: Cash (Amount paid for reacquired shares) - $6,000

Step 3: Calculate the increase in the Retained Earnings:
Since the treasury shares were reacquired, the stockholders' equity will need to adjust. The Retained Earnings account will increase by the difference between the amount received from selling the treasury shares and the cost of reacquiring them.

Step 4: Prepare the journal entry for November 15 (sale of treasury shares):
To record the sale of all treasury shares on November 15 for $12 per share, the journal entry would be:
Date: November 15
Debit: Cash ($12 x 600) - $7,200
Credit: Treasury Stock ($10 x 600) - $6,000
Credit: Additional Paid-in Capital (to adjust remaining amount) - $1,200 (600 shares x ($12 - $10))

In the journal entry, the credit account is "Additional Paid-in Capital," and the amount credited is $1,200, representing the difference between the amount received from selling the treasury shares and the book value of those shares.