Prior to June 30, a company has never had any treasury stock transactions. A company repurchased 100 shares of its $1 par common stock on June 30 for $40 per share. On July 20, it reissued 50 of these shares at $46 per share. On August 1, it reissued 20 of the shares at $38 per share. What is the journal entry necessary to record the repurchase of stock on June 30?
A. Debit Treasury Stock $3,900; debit Paid-in Capital, Treasury Stock $100; credit Cash $4,000.
B. Debit Treasury Stock, Common $4,000; credit Cash $4,000.
C. Debit Common Stock $4,000; credit Cash $4,000.
D. Debit Cash $4,000; credit Treasury Stock $4,000.
E. Debit Common Stock $100; debit Treasury Stock $3,900; credit Cash $4,000.
Answer: B
You might also like to view...
How does a central bank establish credibility?
What will be an ideal response?
Which of the following is true about latent markets?
A) An organization's initial success is based on its competitiveness. B) A product has zero demand before it is offered. C) A product's demand emerges with a particular political trend. D) A product's demand remains incipient in a latent market.
A comprehensive chart of accounts and a review of complex or unusual transactions by supervisory personnel are control procedures necessary for proper classification of accounts
a. True b. False Indicate whether the statement is true or false
The readiness of an individual or a group to perform a specific task depends on the _________ and ________ to perform the task.
A) Aptitude; readiness B) Facility; enthusiasm C) Ability; willingness D) Capacity; motivation