Answer:
Treasury stock is $108,000
Additional paid-in capital is $42,000
Explanation:
In the cost method, when the treasury stock which is re-issued at the price that is in excess or more of its cost, then the additional or extra paid- in capital from the treasury stock is credited against the difference.
The journal entry which is to be recorded as:
Cash A/c..................................Dr $150,000
Treasury stock A/c........................... Cr $ 108,000
Additional paid-in capital A/c.........Cr $42,000
Working Note:
Additional paid-in capital from transactions of treasury stock = (3,000 × $50) - (3,000 × $36)
= $150,000 - $108,000
= $42,000
