Dragonstone Corp. purchased 600 shares of the company's issued common stock, paying $14 per share. To record the purchase, the journal entry will be:
A) Debit to Common Stock $8,400, credit to Cash $8,400
B) Debit to Treasury Stock $8,400, credit to Common Stock $8,400
C) Debit to Treasury Stock $8,400, credit to Cash $8,400
D) No journal entry is needed.
C) Debit to Treasury Stock $8,400, credit to Cash $8,400
Explanation: number of shares × price; ex: 600 × $14 = $8,400
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