Reference no: EM132446819

Question - Fleek Dress Company previously purchased 8,000 shares of treasury stock on the open market for $8 per share. Later, the company resells 5,000 shares for $10 per share. What is the journal entry for the sale?

debit cash, $50,000; credit treasury stock, $50,000

debit cash, $50,000; credit treasury stock, $40,000; credit retained earnings, $10,000

debit cash, $50,000; credit treasury stock, $10,000; credit additional paid-in capital, $40,000

debit cash, $50,000; credit treasury stock, $40,000; credit additional paid-in capital-treasury stock, $10,000