Dali's Dessert Company provides the following information from the Stockholders' Equity Section of the Balance Sheet:

Common Stock, $1 par value, 100,000 shares issued and outstanding
$100,000
Additional Paid-in Capital in Excess of Par—Common
900,000
Additional Paid-in Capital-Retired Shares
15,000
Retained Earnings
1,125,000
Total stockholders' Equity
$2,140,000

Dali acquired 15,000 shares of common stock in the open market at a price of $12 per share and retired the shares. What is the journal entry to record this transaction?

What will be an ideal response?

Answer:
Common Stock—$1 par
15,000

Addl. Paid-in-Capital in Excess of Par—Common
135,000

Addl. Paid-in-Capital-Retired Shares
15,000

Retained Earnings
15,000

Cash

180,000