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

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

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.

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explanation:

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