Retire stock: Buy back of shares from the shareholders by paying cash and obtaining the status of “authorized but unissued shares are known as retired shares. Treasury Stock : It refers to the shares that are reacquired by the corporation that are already issued to the stockholders, but reacquisition does not signify retirement. To Journalize: The entry to effect the reclassification of treasury shares as retired shares.

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Chapter 18, Problem 18.15E

To determine

Retire stock:

Buy back of shares from the shareholders by paying cash and obtaining the status of “authorized but unissued shares are known as retired shares.

Treasury Stock:

It refers to the shares that are reacquired by the corporation that are already issued to the stockholders, but reacquisition does not signify retirement.

To Journalize: The entry to effect the reclassification of treasury shares as retired shares.

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