Question

Saddleback manufacturing ltd. purchased 5,000 shares of its own previously issued $10 value common stock for $95,000. Thes 5,000 would be considered

Answer 1

The Purchased 5,000 shares at $95,000 would be considered as Treasury stock and it will be treated as Asset

Step-by-step explanation:

Journal Entry Debit Credit

Treasury stock $95,000

Cash $95,000

The 5,000 shares should be considered as authorized , issued and outstanding shares although they are deducted from paid in capital under stockholders equity section.