knutson company reacquired 5,000 shares of its $15-par common stock for $13/share. the debit to treasury stock is
65000
To determine the debit to Treasury Stock, we need to calculate the total cost of reacquiring the 5,000 shares.
The total cost of reacquiring the shares can be calculated by multiplying the number of shares by the price per share:
Total Cost = Number of Shares × Price per Share
Total Cost = 5,000 shares × $13/share
Total Cost = $65,000
Thus, the debit to Treasury Stock for Knutson Company is $65,000.
To find the debit to the treasury stock, we need to calculate the total amount paid by the Knutson Company to reacquire the 5,000 shares of its $15-par common stock.
The formula to find the total amount paid is: Total amount paid = Number of shares repurchased × Price per share.
In this case, the number of shares repurchased is 5,000 shares, and the price per share is $13. Hence, the calculation becomes:
Total amount paid = 5,000 shares × $13/share
= $65,000
Therefore, the debit to the treasury stock account is $65,000.