A firm owns 1,000 treasury shares which it acquired for $15 per share (par value $1). The firm sells 500 of the treasury shares for $20 per share. Using the cost method, what is the entry to record the sale of the treasury stock using the cost method?
a. Cash 10,000
Common Stock-Treasury Shares 10,000
b. Cash 10,000
Common Stock-Treasury Shares 7,500
Add'l Paid-in Capital-Treasury Stock 2,500
c. Cash 10,000
Common Stock-Treasury Shares 500
Add'l Paid-in Capital-Treasury Stock 9,500
d. Cash 10,000
Common Stock-Par 1,000
Common Stock-Treasury Shares 11,000
e. Common Stock-Treasury Shares 11,000
Cash 10,000
Common Stock-Par 1,000
B
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Answer the following statement true (T) or false (F)
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Answer the following statement true (T) or false (F)